Ping An P&C Maintains Strong Credit Ratings Amid Market Growth
AM Best has upheld the A (Excellent) Financial Strength Rating and the 'a+' (Excellent) Long-Term Issuer Credit Rating of Ping An Property & Casualty Insurance Company of China, Ltd. (Ping An P&C). The ratings outlook remains stable.
These evaluations are anchored in Ping An P&C's robust balance sheet, strong operational performance, and a favorable business profile, complemented by effective enterprise risk management strategies. The company's risk-adjusted capitalization, strengthened by equity credit for hybrid securities, maintained a top-tier position at the end of 2025, according to AM Best's Capital Adequacy Ratio (BCAR). Ping An P&C's consolidated capital and surplus increased by 7% to reach RMB 146.2 billion (USD 20.9 billion) in 2025.
The investment portfolio is recognized for its liquidity and diversity, primarily composed of fixed-income securities. Key positive factors include the company's financial flexibility, with a commendable history in domestic debt financing and a solid regulatory solvency ratio. By the end of 2025, AM Best calculated the company's adjusted financial leverage at 6.0%, factoring in capital supplementary bonds, underscored by a strong interest coverage ratio.
The company achieved a 10.3% return on equity in 2025, driven by mid-single-digit growth in premiums, surpassing the growth rate of China's property/casualty insurance sector. This performance is reflected in superior underwriting results and stable investment returns. Substantial revenue comes from the motor lines division, where Ping An P&C has realized profitability in its new-energy vehicle portfolio, leveraging its advanced underwriting capabilities.
Ping An P&C is distinguished by its extensive insurance portfolio, wide distribution network, and strong brand presence in China. The insurer accounts for approximately 20% of the domestic market as the second-largest property/casualty insurer over the past decade, with insurance service revenue reaching RMB 338.9 billion (USD 48.4 billion) in 2025. While motor insurance premiums constitute just under 70% of its total revenue, the company is expanding into non-motor areas such as health, accident, and agriculture insurance.
Potential advancements in Ping An P&C's ratings could arise from successful global expansion without compromising balance sheet strength or operational efficiency. Conversely, prolonged declines in underwriting or operational performance, along with substantial reductions in balance sheet robustness, may prompt negative ratings adjustments. AM Best, a leading global credit rating agency, has disseminated these ratings. Detailed descriptions of the ratings and their adjustments can be found on AM Best's official website.