Adjusted surplus reached $2.8b at end-2025 after another year of double-digit gains.
Cathay Century Insurance’s capital strength is expected to remain at AM Best’s strongest level as the Taiwanese insurer expands its underwriting and investment risks in a controlled manner.
The ratings agency said Cathay Century’s balance sheet strength remained very strong, supported by continued growth in capital and surplus, a diversified investment portfolio, strong liquidity and solvency, comprehensive reinsurance and financial support from its parent, Cathay Financial Holding Co., Ltd.
Cathay Century’s consolidated adjusted capital and surplus rose by a double-digit rate for another year to $2.8b at the end of 2025.
Growth continued in the first half of 2026, supported by retained profits from its underwriting and investment operations.
AM Best expects the company’s risk-adjusted capitalisation, measured by its Best’s Capital Adequacy Ratio (BCAR), to remain at the strongest level over the short to intermediate term.
This is expected to be supported by retained earnings as the insurer expands its underwriting and investment risks.
Cathay Century reported net profit of$106.4m in 2025, with return on equity of 18.9% based on adjusted capital and surplus. It remained profitable in the first half of 2026.
Gross premium written increased at a single-digit rate in 2025, driven mainly by growth in engineering and motor insurance. Its combined ratio also improved moderately as loss experience improved and management expenses remained under control.
Voluntary motor insurance, the company’s largest business line, continued to generate an underwriting margin. AM Best attributed this to selective underwriting, gradual expansion of profitable policy coverage and cumulative rate adjustments made in recent years.