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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 China BOCOM 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 China BOCOM Insurance Company Limited (CBIC) (Hong Kong). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect CBIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect the wide range of support that the company receives from its parent, Bank of Communications Co., Ltd. (BOCOM), including capital, distribution channel, investment management, operational and risk management, and brand recognition.

CBIC’s risk adjusted capitalisation remained at the strongest level at year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s capital and surplus increased in 2024, supported by full profit retention and favourable fair value movements of its investments. Other supporting factors include its robust regulatory solvency level as evaluated by the Hong Kong regulator’s risk-based capital ratio. Investment risk remains an offsetting factor in the company’s balance sheet strength assessment given its high-risk appetite for unlisted equity investments. Another offsetting factor is CBIC’s moderately high reinsurance dependency, which is partly mitigated by its prudent reinsurance arrangements and diversified reinsurance panel.

AM Best views CBIC’s operating performance as adequate. In 2024, the company achieved moderate growth in insurance services revenue. The company has maintained a healthy bottom line in the past decade except in 2022, when its net profit was negatively impacted by unfavourable market movements. While investment income remains the key contributor to CBIC’s net profit, its underwriting results continue to be impacted by high operating expenses relative to its small premium base.

AM Best assesses CBIC’s business profile as limited. The company maintains a modest presence in Hong Kong’s highly fragmented general insurance market. The company’s underwriting portfolio remains diversified. Additionally, the company has a diversified distribution network including inward reinsurance, brokers, bancassurance, agencies and direct channel. As the sole general insurance arm of the BOCOM group, CBIC carries BOCOM’s brand name and receives distribution support from its extensive banking network and subsidiaries.

Negative rating actions could occur if there is a material deterioration in CBIC's operating performance, for example, deterioration of the underwriting performance or large losses from its unlisted financial assets. Negative rating actions also could occur if there is a substantial decline in the overall balance sheet strength of CBIC, for example, due to heightened exposure to higher risk investments. Positive rating actions are probable if the company could achieve prolonged improvement in its operating performance that is superior to market peers.

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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