AM Best cites the company’s strong capital position and steady investment income.
Luen Fung Hang Insurance Company Limited is expected to maintain strong operating performance, supported by profitable underwriting and stable investment income, as Macau’s non-life insurance market faces limited growth.
AM Best has maintained a stable outlook on the Macau-based insurer, citing its very strong balance sheet, strong operating performance and appropriate risk management.
The insurer’s gross premiums written have remained largely flat in recent years amidst an uneven local economic recovery.
However, its underwriting results have remained profitable, with an average combined ratio of 60.2% from 2021 to 2025. Its loss ratio was below the industry average, whilst its expense ratio remained moderate.
Investment income from interest and dividends has also provided a stable source of earnings.
Most of LFH’s investment portfolio is held in fixed-income securities, cash and cash equivalents.
Its risk-adjusted capitalisation remained at the strongest level at year-end 2025, according to AM Best’s Best’s Capital Adequacy Ratio. LFH has also increased dividend payouts in recent years whilst maintaining a strong solvency position.
LFH remains Macau’s second-largest non-life insurer, with more than 20% of the market based on domestic gross premiums written in 2025. Support from its bank shareholders has helped it secure bancassurance business.
However, its premiums remain concentrated in fire and medical insurance, whilst its operations are focused on Macau, limiting its geographic diversification.