HONG KONG--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of China Reinsurance (Hong Kong) Company Limited (China Re HK) (Hong Kong). The outlook of the Long-Term ICR has been revised to positive from stable, whilst the outlook of the FSR is stable.
These Credit Rating (rating) actions follow AM Best’s assessment of China Re HK being a newly added member of the group’s lead rating unit, China Reinsurance (Group) Corporation (China Re Group). China Re HK is a wholly owned subsidiary of China Life Reinsurance Company Ltd. (China Re Life), which is wholly owned by China Re Group. The group’s ultimate parent is China Investment Corporation.
The ratings reflect China Re Group’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. The ratings also reflect China Re HK’s strategic importance to and integration within China Re Group, as its only overseas life reinsurance subsidiary, in addition to the implicit and explicit support the company receives from its immediate parent, China Re Life, including capital, brand recognition, business development, investment, risk management and operational support.
In June 2021, China Re Life provided a capital injection of HKD 2 billion (USD 258 million) to China Re HK to support the company’s future business growth and maintain a healthy capitalisation level. Going forward, AM Best expects China Re Life will remain committed to provide financial supports in the future to satisfy China Re HK’s business expansion needs.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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