AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Bank of China Group Insurance Company Limited (BOCG Insurance) (Hong Kong). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect BOCG Insurance’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

BOCG Insurance’s risk-adjusted capitalisation remained at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s capital and surplus grew organically in 2025, supported by favourable investment income and positive underwriting results. Its solvency ratio remained robust and is expected to enhance further under the Hong Kong’s Risk-Based Capital Regime. Its illiquid investment in associated companies accounts for approximately one-third of the investment portfolio, which poses concentration and liquidity risk to the company. Nonetheless, the company’s liquid assets are expected to be sufficient to cover its net insurance liabilities.

AM Best assesses BOCG Insurance’s operating performance as adequate. The company delivered a double-digit return-on-equity ratio in 2025. Its profitable bottom line was driven largely by solid net investment returns, supported by a meaningful share of profits from its interests in associated companies, as well as interest income and dividend income. The company has generated underwriting profits for five consecutive years since 2021, with an overall thin underwriting margin.

BOCG Insurance is ranked sixth in terms of non-life gross premiums written, with a 4.2% market share in 2025, as per data published by the Hong Kong Insurance Authority. The company’s underwriting portfolio remains moderately diversified, with its major lines of businesses including accident and health, property damage, general liability, and motor. AM Best expects BOCG Insurance to continue utilising the extensive branch network and the reputable brand name of its banking parent, Bank of China Group, to assess the large client base and generate profitable local business.

Negative rating actions could occur if BOCG Insurance experiences a material deterioration in its risk-adjusted capitalisation. Negative rating actions also could arise if there is significant deterioration in the company’s operating profitability; for instance, due to sustained and unfavourable underwriting loss experience. Positive rating actions could occur if BOCG Insurance demonstrates better-than average operating performance, supported by sustained improvement in underwriting profitability.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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