China Taiping Insurance Ratings Affirmed by AM Best with Stable Outlook
On March 19, 2026, AM Best announced the affirmation of China Taiping Insurance (Macau) Company Limited (CTIM) with a Financial Strength Rating of 'A' (Excellent) and a Long-Term Issuer Credit Rating of 'a' (Excellent). Both ratings carry a stable outlook, reflecting CTIM’s robust financial stability, strong operational performance, and effective enterprise risk management.
CTIM's capital adequacy, evaluated through Best's Capital Adequacy Ratio (BCAR), remains at the highest level. Over the past two years, the company has experienced substantial growth in capital and surplus, reaching MOP 1,053 million (approximately USD 132 million) as per the unaudited financial results for 2025. Contributing to CTIM's financial strength are its conservative investment approach, focusing on cash and investment-grade bonds, and a solid reinsurance program with credible partners, albeit with moderate reliance on reinsurance.
The insurance provider has consistently delivered favorable operating results, evidenced by an average return-on-equity ratio of 17.8% from 2021 to 2025. CTIM's profitability is attributed to strong underwriting outcomes and steady investment income. Notably, the net combined ratio improved in 2025 due to reduced loss ratios for motor and employees’ compensation insurances. Investment returns have remained stable in the mid-single-digit range, with expectations that investment activity will continue to bolster performance through reliable interest, dividends, and rental income streams.
Dominating Macau's non-life insurance sector, CTIM held a 34% market share in 2025, based on gross premiums. The company’s diversified underwriting portfolio and distribution channels, along with a growing online presence and cross-selling efforts with affiliated entities of China Taiping Insurance Group Ltd., contribute to its market leadership.
The current ratings are stable, but potential downgrades could occur if there are persistent negative trends in operating performance or a decline in the credit profile of its parent company, China Taiping Insurance Holdings Company Limited (CTIH). Conversely, enhancements in CTIH’s credit fundamentals, coupled with significant improvements in CTIM’s capital sufficiency and operational strength, could result in positive rating adjustments.
AM Best, a global agency specializing in the insurance sector, provides these ratings and maintains its presence across over 100 countries, with regional offices in key cities worldwide. For further details on the ratings and related disclosures, please visit AM Best's Recent Rating Activity web page.