Cathay Century maintains strong balance sheet despite H1 capital dip

Its C&S may have declined by net profits retained "good momentum" during the period.

Cathay Century Insurance Company Limited (Taiwan) maintains a very strong balance sheet and adequate operating performance, despite a decline in its capital and surplus (C&S) in the first half of 2025.

The insurer— the second largest in Taiwan’s non-life sector— saw its consolidated adjusted C&S decline moderately on the back of unrealised capital loss in other comprehensive income and a dividend payout during the H1 period, noted AM Best.

However, AM Best expects Cathay Century’s risk-adjusted capitalisation to remain at a robust level over the short to intermediate term, supported by organic growth in retained earnings from controlled expansion in underwriting and investment risks.

Other supportive factors of the balance sheet strength assessment include the company’s diversified investment portfolio, which focuses on low-risk fixed-income securities, good liquidity, and comprehensive reinsurance arrangements, AM Best said.

There is also the strong financial flexibility afforded by its ultimate parent, Cathay Financial Holding.

Cathay Century posted double-digit growth in consolidated adjusted C&S in end-2024, at NT$18.4b. Its net profit was NT$2.6b during the year, and it maintained its good momentum into H1 20205 on favourable technical results from its underwriting portfolio and positive investment returns, AM Best said.

Cathay Century has a market share of 13.6% in terms of direct premiums written (DPW) in 2024.