Tk.cn Insurance to sustain growth with Taikang backing

The insurer reported three consecutive years of positive net operating profits.

China-headquartered Tk.cn Insurance is projected to maintain its strong financial fundamentals and continue benefiting from its strategic position within Taikang Insurance Group, Fitch Ratings assured.

Despite a decline in its solvency ratio to 273% under C-ROSS phase 2 by end-1Q24, Tk.cn's position remains well above the regulatory minimum of 100%. Fitch expects adequate capital support from Taikang Insurance Group to sustain planned premium expansion.

Tk.cn's company profile reflects its niche in the online insurance market, capturing 0.7% of the Chinese non-life insurance market in 2023, primarily in accident and health insurance.

Tk.cn has reported three consecutive years of positive net operating profits, with a combined ratio of 96.6% in 2023.

Whilst underwriting margins narrowed, stable investment yields have contributed to overall profitability.

Tk.cn maintains strong liquidity with liquid assets amounting to about 274% of net loss reserves at end-2023, supporting its ability to meet insurance claims.