On 17 June, 2021 (Beijing Time), AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of China Reinsurance (Hong Kong) Company Limited (“China Re HK”). At the same time, the outlook of the Long-Term ICR has been adjusted to positive from stable, whilst the outlook of the FSR is stable. These rating actions follow AM Best’s assessment of China Re HK being a newly added member of the group’s lead rating unit, China Reinsurance (Group) Corporation (“China Re Group”).
The ratings reflect China Re Group’s balance sheet strength, which A.M. Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect China Re HK’s global strategic importance to and integration within China Re Group, as its only overseas life reinsurance subsidiary. Since opening in 2019, China Re HK has obtained the implicit and explicit support from its immediate parent, China Life Reinsurance Company Limited ("China Re Life"), including capital, brand recognition, business development, investment, risk management and operational support. In June 2021, China Re HK has been provided with a capital injection of HKD 2 billion (USD 258 million) from China Re Life to support the company’s future business growth and maintain a healthy capitalization level. Going forward, A.M. Best expects China Re Life will remain committed to provide financial supports in the future to satisfy China Re HK’s business expansion needs.