The Hong Kong subsidiary swung back to profit in 2024, with the ratings agency also pointing to the importance of its cross-border role linking mainland China and Hong Kong.
The country's three major non-life groups remain well capitalised after FYE26 earnings were supported by divestment proceeds and better pricing in domestic motor and property lines.
Insurers across China, Taiwan and South Korea are bolstering capital buffers and refining investment strategies as low rates and volatility strain traditional earnings models.
A prolonged low-rate environment is forcing Chinese insurers to rethink product design, with participating policies emerging as a core strategic and credit-supportive pillar.
With alternative investment yields fading and bond returns under pressure, insurers are reshaping portfolios and leaning on capital markets, increasing vulnerability to earnings shocks.
While Hong Kong insurers are expected to weather China’s crackdown with little direct impact, the ratings agency said stricter controls on capital outflows could pressure premium growth prospects.
The Shandong government-backed insurer expects its operating results to improve further over the next two years on disciplined underwriting and a conservative investment strategy.
