KUALA LUMPUR, April 3 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Hong Kong’s CMB Wing Lung Insurance Company Limited (CMBWLI), with a stable outlook.
In a statement, AM Best said the credit ratings (ratings) reflect CMBWLI’s very strong balance sheet strength, strong operating performance, neutral business profile, and appropriate enterprise risk management.
The company’s balance sheet strength is underpinned by its robust risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio. Capital and surplus recorded mid- to high-single-digit growth in 2024 and 2025, benefiting from partial retention of its sustained and stable operating profits.
CMBWLI maintains a prudent investment strategy, enhancing bond portfolio quality while keeping cash and cash equivalents as its largest asset class. Additional supporting factors include its strong regulatory solvency position, positive liquidity, and comprehensive reinsurance programme with moderate dependency.
Its operating performance remains strong, with high-single-digit average returns on equity over the past five years (2021 to 2025). Despite a slight decline of topline in 2025 due to competitive market conditions, the company maintained a net/net combined ratio consistently below 90 per cent, outperforming the broader market.
CMBWLI’s investment performance also improved, supported by stable interest and dividend income, fair value gains on listed securities, and recovery of impairment loss.
As a medium-sized non-life insurer in Hong Kong, CMBWLI is one of the major market players in the employees’ compensation segment, with a diversified portfolio spanning motor and property damage lines.
Backed by China Merchants Group Limited, the company expects further growth in marine insurance and is exploring opportunities in inward property damage business beyond Hong Kong.
-- BERNAMA
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