PICC HK Receives Upgrade from AM Best for Financial Strength Rating

On July 15, 2026, AM Best announced an upgrade of the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) for The People’s Insurance Company of China (Hong Kong), Limited (PICC HK). The outlook for these ratings has shifted from positive to stable. This upgrade reflects PICC HK’s robust balance sheet, consistent operating performance, neutral business profile, and effective enterprise risk management. The company’s strategic importance to its parent entity, The People’s Insurance Company (Group) of China Limited (PICC Group), also bolsters this rating enhancement. PICC HK has shown notable improvement in business scale, thereby fortifying its market position with quality advancements in inward reinsurance. In 2025, it was ranked 8th among primary non-life insurers in Hong Kong, capturing a 3.8% market share based on both onshore and offshore gross premiums written, as per data from the Hong Kong Insurance Authority. The company's profitable growth stems from geographical diversification of its reinsurance portfolio. Since 2025, PICC HK has harnessed opportunities via Chinese Interest Abroad through its affiliate, PICC Property & Casualty Company Limited, achieving double-digit expansion in its top line. Looking ahead, PICC HK intends to further expand its reinsurance operations by focusing on Chinese Interest Abroad businesses. AM Best expects the company to adhere to its strategic objectives while maintaining underwriting discipline. By the end of 2025, the company's risk-adjusted capitalization, evaluated using Best’s Capital Adequacy Ratio (BCAR), was notably strong. Its investment strategy remains solid, emphasizing investment-grade bonds, cash, cash equivalents, and equities, ensuring strong regulatory compliance and liquidity levels. Serving as the only overseas insurance entity of PICC Group, PICC HK is pivotal in furthering the group’s international strategies, benefiting from both explicit and implicit support from its parent. This support enables operational synergies, particularly in business development, management, and risk oversight, aligning with regulatory compliance requirements. AM Best suggests that positive rating movements could occur if PICC HK achieves favorable operating results that enhance its performance. However, negative rating adjustments may arise if there’s a significant decrease in operating results or a reduction in the support from PICC Group, although such outcomes are considered unlikely in the short to intermediate term. The communicated ratings were disclosed to the rated entities before publication and remain unchanged thereafter. For additional information on these ratings, including necessary disclosures, visit AM Best’s website. As a leading authority in insurance credit ratings and analysis, AM Best operates in over 100 countries globally.