AM Best Upgrades Credit Ratings of China Reinsurance (Hong Kong) Company Limited
HONG KONG–(BUSINESS WIRE)–AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of China Reinsurance (Hong Kong) Company Limited (China Re HK) (Hong Kong). The outlook of the Long-Term ICR has been revised to positive from stable, whilst the outlook of the FSR is stable.
These Credit Rating (rating) actions follow AM Best’s assessment of China Re HK being a newly added member of the group’s lead rating unit, China Reinsurance (Group) Corporation (China Re Group). China Re HK is a wholly owned subsidiary of China Life Reinsurance Company Ltd. (China Re Life), which is wholly owned by China Re Group. The group’s ultimate parent is China Investment Corporation.
The ratings reflect China Re Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect China Re HK’s strategic importance to and integration within China Re Group, as its only overseas life reinsurance subsidiary, in addition to the implicit and explicit support the company receives from its immediate parent, China Re Life, including capital, brand recognition, business development, investment, risk management and operational support.
In June 2021, China Re Life provided a capital injection of HKD 2 billion (USD 258 million) to China Re HK to support the company’s future business growth and maintain a healthy capitalisation level. Going forward, AM Best expects China Re Life will remain committed to provide financial supports in the future to satisfy China Re HK’s business expansion needs.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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