Investment returns still support overall profit whilst core insurance results remain thin.

The People’s Insurance Company of China (Hong Kong), Limited (PICC HK) is expected to grow its inward reinsurance business whilst remaining disciplined in underwriting risks.

AM Best cited the company's very strong balance sheet, adequate operating performance, neutral business profile and appropriate enterprise risk management.

It added that the ratings reflect PICC HK's strategic importance to its parent company, The People's Insurance Company (Group) of China Limited (PICC Group).

According to Hong Kong Insurance Authority data, PICC HK ranked eighth amongst primary non-life insurers in Hong Kong in 2025, with a 3.8% market share based on onshore and offshore gross premiums written.

AM Best said the company has delivered sustained profitable growth in its inward reinsurance portfolio through global geographical diversification.

Since 2025, PICC HK has also expanded its Chinese Interest Abroad (CIA) business by working with its affiliate, PICC Property & Casualty Company Limited, resulting in double-digit growth in premium income.

The company plans to continue expanding its inward reinsurance portfolio, with greater focus on CIA business, whilst maintaining underwriting discipline.

The ratings agency said PICC HK's risk-adjusted capitalisation remained at the strongest level at the end of 2025, based on Best's Capital Adequacy Ratio (BCAR).

It added that the insurer has a well-diversified investment portfolio, mainly consisting of investment-grade bonds, cash and cash equivalents, and equities. The company also maintained a healthy regulatory solvency position and strong liquidity.

AM Best said PICC HK's operating performance remains adequate. Investment income continues to support its overall profit, whilst underwriting results remain close to breakeven.