Nan Shan General Insurance's Strong Financial Ratings Reaffirmed by AM Best

AM Best has reaffirmed its ratings for Nan Shan General Insurance Co., Ltd., a Taiwan-based insurer, highlighting its strong financial performance. The company maintains a Financial Strength Rating of A- and a Long-Term Issuer Credit Rating of "a-," with a stable outlook. These assessments speak to the insurer's robust balance sheet, solid performance metrics, and effective enterprise risk management practices.

The insurer's balance sheet benefits from improved risk-adjusted capitalization, deemed robust by the end of 2025. This strength is attributed to steady earnings growth and partial profit retention. Nan Shan General's insurance portfolio, which focuses on personal lines and smaller commercial accounts, alongside prudent investment strategies, has bolstered its financial position. However, slower organic capital growth is expected due to a relatively small capital base and significant dividend payouts.

In 2025, Nan Shan General demonstrated positive underwriting results, with its premium growth surpassing industry averages for the third consecutive year. The company expanded its offerings in motor, travel, and commercial insurance, enhancing its profitability in these sectors. Operational efficiency improved, marked by favorable net expense and combined ratios, contributing to a robust double-digit return on equity.

Investment strategies also supported financial gains, with equities and fixed-income securities generating steady returns. AM Best projects continued investments in domestic bonds and selective equity placements to further enhance returns.

Nan Shan General's operations benefit significantly from its affiliation with Nan Shan Life Insurance Co., Ltd., Taiwan's third-largest life insurer. This relationship enhances brand recognition and distribution capabilities, strengthening the insurer's overall operational framework.

Potential rating changes may result from significant improvements in financial strength or performance. Successful execution of business strategies, complemented by strong support from the parent company, might lead to enhanced ratings, provided Nan Shan Life maintains its robust credit standing.

These ratings and related information are available on AM Best's website, offering detailed insights into the global insurance sector's performance and analytics across more than 100 markets.