AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) to Samsung Property & Casualty Insurance Company (China), Ltd. (Samsung P/C China). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings of Samsung P/C China reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Samsung P/C China is a non-life insurance company established in 2005. The company was a wholly owned subsidiary of Samsung Fire & Marine Insurance Co., Ltd. (SFM) until 2022, during which time Shenzhen Tencent Domain Computer Network Company Limited (Tencent Domain), an affiliate of Tencent Holdings Limited (Tencent), and four minority shareholders made investments of RMB 1.95 billion into the company. Following the introduction of Tencent Domain, Samsung P/C China continues to receive explicit and implicit support from SFM, including stable business relationships with affiliated Samsung entities and Korean Interests Abroad (KIA) clients, strong brand recognition, reinsurance support and underwriting know-how. The company also benefits from the distribution capabilities and extensive market outreach of Tencent’s online platforms and overall management oversight.

Samsung P/C China is a small-sized player in China’s non-life industry. The company has built a stable commercial book and a growing personal line portfolio with the support of its two major shareholders. The company offers a wide range of insurance products including commercial property, liability, engineering, accident and health (A&H) and shipping return insurance. Samsung-affiliated businesses and KIA clients are primarily managed by Samsung P/C China’s direct channel, with client management, pricing, underwriting guidance supported by SFM. The company leverages on Tencent’s platforms to acquire shipping return business and distribute A&H products, while continuing to diversify its third-party business sources by partnering with brokers, agents and external platforms.

Samsung P/C China has consistently delivered positive earnings over the last few years. The company recorded significant top-line growth in terms of gross premiums written in 2024, primarily driven by shipping return insurance and health insurance distributed through WeSure, a Tencent-backed online insurance platform. Underwriting profitability was under some pressure due to higher loss ratios and increased operating expenses over the last two years. Investment returns have been consistently positive, supported by a steady stream of interest income sourced from deposits and fixed-income investments.

AM Best assesses Samsung P/C China’s risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supplemented by its conservative investment strategy, sound liquidity and a comprehensive reinsurance programme. The company’s capital position was materially enhanced following the shareholding change, with its local solvency ratio considerably higher than the regulatory minimum requirement level. AM Best views SFM and the parent group of Tencent Domain as being equipped with superior credit fundamentals. These companies also are expected to continue to provide financial and non-financial support to Samsung P/C China over the intermediate term. AM Best also views Samsung P/C China’s overall risk management practices as appropriate for its risk profile.

Negative rating actions could occur if there is significant and adverse deviation in Samsung P/C China’s business execution compared with its business plan, leading to material deterioration in its operating performance. Negative rating actions could also occur if the company’s balance sheet strength materially deteriorates, due to a significantly reduced level of support from major shareholders, including financial flexibility and reinsurance. Negative rating actions could also arise if there is a reduced level of business and distribution support from major shareholders, which negatively impacts Samsung P/C China’s business profile assessment. While deemed unlikely over the intermediate term, positive rating actions may occur if the company demonstrates sustained and favourable operating performance with no material deterioration in its current balance sheet strength assessment.

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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