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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Affirms Credit Ratings of Union Insurance Company Limited

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

The ratings reflect Union’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.

Union’s balance sheet strength is supported by its risk-adjusted capitalisation, which remained at the strongest level in 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s adjusted capital and surplus has recovered fully to pre-COVID-19 pandemic levels, driven by improved operating performance and profit retention. Union’s investment portfolio has remained liquid and diversified, with the majority of assets invested in cash and domestic investment grade bonds. The company’s comprehensive reinsurance programme is placed with a reinsurer panel of good credit quality. Union’s risk-based capital ratio remains at a healthy level.

Union reported favourable operating results in 2024, supported by positive underwriting and investment performance. The company’s direct premiums written increased by 11.2% last year, mainly driven by expansion in commercial lines and non-motor personal lines. The voluntary motor segment recorded a slightly lower-than-average premium growth rate, as Union has been adjusting its underwriting strategy to improve profitability and explore new business opportunities. The overall loss experience remained stable, while the reinsurance programme was effective in partially mitigating net losses from several natural catastrophes in 2024. Union’s net operating expense ratio has exhibited a downward trend over the past five years and reached a similar level as the industry average, based on AM Best’s calculations. The company’s investment yield (including capital gains and losses) remains competitive compared with its domestic peers, supported by the strong performance of its equity investments.

Union is a medium-sized insurer in Taiwan’s non-life market and ranked eighth in 2024, based on direct premiums written. Similar to other companies in the market, Union’s underwriting portfolio is diversified moderately but slightly skewed toward motor insurance, with its other major business lines being the fire and accident segments. The company has maintained a diversified distribution channel mix, with major business contributors being car dealers, the direct channel and brokers.

Negative rating actions could occur if there is a significant decline in Union’s risk-adjusted capitalisation. Positive rating actions could occur if Union exhibits sustained improvements in operating performance over the intermediate term while maintaining its current balance sheet strength assessment level.

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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