Shinkong Insurance’s underwriting profitability strengthened further in 2025, with its net combined ratio edging down to a record low of 82.2%, according to a ratings update.
AM Best has affirmed the Taiwan non-life insurer’s financial strength rating of A (Excellent) and long-term issuer credit rating of “a+” (Excellent), with a stable outlook.
The rating agency said operating performance has remained robust, citing a five-year weighted average return on equity of 14.8% and a net combined ratio of 87.5% over 2021-2025. It attributed the favourable 2025 result to solid underwriting profitability, and said investment returns have been stable, supported by recurring interest and dividend income.
It expects performance to remain strong over the intermediate term, supported by “strict underwriting discipline”, effective expense management and positive investment returns.
On reinsurance, AM Best said the balance sheet assessment benefits from a comprehensive reinsurance programme, alongside prudent reserving practices.
The insurer’s balance sheet strength was assessed as very strong, underpinned by risk-adjusted capitalisation that the agency expects to remain at the strongest level in 2025 and going forward, as measured by Best’s Capital Adequacy Ratio. AM Best also pointed to conservative investment strategy, consistent capital management, good access to capital markets and a statutory risk-based capital ratio it described as healthy.
Shinkong Insurance is the third-largest insurer in Taiwan’s non-life market by gross premiums written. Its portfolio is moderately diversified, with motor accounting for about half of premiums, while its direct channel remains the biggest distribution contributor. AM Best also cited appropriate enterprise risk management, supported by a robust risk culture and developed ERM framework.
