First-half net profit reached $107m as underwriting and investment performance supported financial stability.
Taiping Reinsurance Company (TPRe) is expected to maintain its strongest level of risk-adjusted capitalisation, supported by improved capital management and profits, according to AM Best.
The reinsurer’s capital position is supported by earnings retained in the business, controlled insurance and investment risks, and access to traditional and alternative sources of capital.
Its retrocession programme, which transfers part of its risks to other reinsurers, also supports its financial position.
AM Best expects TPRe to maintain its strong capital position as it continues to generate profits. The ratings agency also expects continued financial support from its parent, China Taiping Insurance Holdings (CTIH), if needed.
TPRe reported a net profit of $165.6m (HK$1.3b) in 2025, supported by insurance service and investment results. Its return on equity was 10.1% under Hong Kong Financial Reporting Standard 17.
The reinsurer’s non-life insurance service results improved moderately, with a net combined ratio of 91%, according to AM Best.
Its life insurance service results also grew as it expanded its protection-focused underwriting portfolio.
Investment performance improved moderately, supported by recurring income from fixed-income investments.
TPRe continued to record stable operating results in the first half of 2026, with net profit of $106.9m (HK$839m).
AM Best assessed TPRe’s balance sheet strength as very strong, operating performance as adequate, business profile as neutral and enterprise risk management as appropriate.
Its risk-adjusted capitalisation remained comfortably above the level required for the strongest assessment under AM Best’s Best’s Capital Adequacy Ratio model.
($1 = HK$7.85)