AM Best has revised its outlooks on Dah Sing Insurance Company Ltd (DSI) to positive from stable while affirming its financial strength rating of A- (Excellent) and long-term issuer credit Rating of “a-” (Excellent), citing sustained premium expansion and stronger underwriting controls as key drivers of the action, according to an October 16 ratings action.
The outlook revision highlights a 66% cumulative rise in gross written premiums from 2020 to 2024, supported by portfolio expansion across accident and health, motor, and employees’ compensation lines. AM Best added that DSI’s diversification and strengthened market position in Hong Kong’s non-life sector underpin the outlook change. The company has also enhanced its actuarial modelling for pricing and performance monitoring while maintaining a conservative stance on catastrophe risk in its inward reinsurance portfolio.
The rating agency also noted that DSI’s underwriting performance improved in 2024 through better controls and risk selection, particularly in property damage and employees’ compensation lines. The insurer remained profitable, recording an adjusted return on capital and surplus of 17.5%, aided by favourable investment results amid buoyant market conditions.
Under Best’s Capital Adequacy Ratio, DSI’s risk-adjusted capitalisation remained at the strongest level, with reported capital and surplus up 19% to HK$2.8bn (US$360.5mn) in 2024, driven by retained earnings and higher equity valuations. Its parent company, Dah Sing Financial Holdings Limited, further demonstrated support by converting HK$550mn in redeemable preference shares into paid-in capital, which then strengthened DSI’s capital quality.
AM Best expects DSI to maintain healthy growth in the medium term through new initiatives and continued diversification, positioning the company competitively in the Hong Kong market. The agency also anticipates disciplined investment management to mitigate exposure to market volatility.
