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For more than 30 years, Cabling Installation & Maintenance has provided useful, practical information to professionals responsible for the specification, design, installation and management of structured cabling systems serving enterprise, data center and other environments. These professionals are challenged to stay informed of constantly evolving standards, system-design and installation approaches, product and system capabilities, technologies, as well as applications that rely on high-performance structured cabling systems. Our editors synthesize these complex issues into multiple information products. This portfolio of information products provides concrete detail that improves the efficiency of day-to-day operations, and equips cabling professionals with the perspective that enables strategic planning for networks’ optimum long-term performance.

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AM Best Upgrades Credit Ratings of Hotai Insurance Co., Ltd.

AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb+” (Good) of Hotai Insurance Co., Ltd. (Hotai Insurance) (Taiwan). Concurrently, AM Best has revised the outlook of these Credit Ratings (ratings) to stable from positive.

The ratings reflect Hotai Insurance’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also reflect the support that the company receives from its ultimate parent, Ho Tai Motor Co., Ltd. (Ho Tai Motor).

The rating upgrades reflect an improvement in Hotai Insurance’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), to a very strong level in 2024 from a weak level in 2023. The risk-adjusted capitalisation is expected to remain at a similar level in 2025, based on Hotai Insurance’s financial projections and AM Best’s analysis. The company’s reported capital and surplus strongly recovered from TWD 4.3 billion as of the year-end 2023 to TWD 6.4 billion as of the year-end 2024, underpinned by favourable underwriting and investment results. Despite an unrealised loss from financial assets measured at fair value through other comprehensive income during the first half of 2025, the company’s reported capital and surplus remains stable. Other supportive factors in the balance sheet strength assessment include Hotai Insurance’s diversified investment portfolio that focuses on low-risk fixed-income securities, comprehensive reinsurance arrangements, improved liquidity position and the ability to access credit facilities during distressed times, which indicates good financial flexibility and confidence in the parent group’s credit fundamentals.

The current ratings also reflect the improvement in Hotai Insurance’s ERM framework. The company has continued to strengthen its risk management over the last few years, including risk identification and monitoring on new products, controls on risk accumulation and risk governance. For example, the company has refined its underwriting policy to set specific limits for new products and incorporate infectious diseases into the catastrophe risk assessment.

Hotai Insurance reported a net profit of TWD 1.9 billion in 2024, owing in part to the reserve release related to pandemic insurance claims during the year. AM Best views the pandemic insurance losses recorded in fiscal-year 2022 as a one-off event and expects Hotai Insurance to deliver favourable operating earnings going forward, supported by profitable underwriting and investment results.

Hotai Insurance’s market ranking improved from eighth in 2020 to sixth 2024 in terms of direct premiums written, underpinned by robust growth in the voluntary motor business with the support of Ho Tai Motor’s extensive network of car dealers. The company is also actively expanding its commercial lines business, while being selective on mega risks and the accident and health business, with an aim to achieve a balanced and high-quality underwriting portfolio.

AM Best continues to view Hotai Insurance as a strategic entity in Ho Tai Motor’s business ecosystem and the group’s fundamentals will remain strong to provide explicit and implicit support to Hotai Insurance, as demonstrated by the capital injections and support on brand recognition and distribution channel.

Negative rating actions could occur if the company’s risk-adjusted capitalisation deteriorates materially, and without timely capital support from its ultimate parent, Ho Tai Motor. A deterioration in the credit profile of the parent company or its level of support to Hotai Insurance may also pose a negative impact on the ratings of Hotai Insurance. Although it is unlikely in the near term, positive rating actions could occur if Hotai Insurance achieves sustained improvement in its operating performance that would be access as strong level while its risk-adjusted capitalisation remains robust.

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.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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