AM Best Revises Outlooks to Positive for CTBC Insurance Company Ltd

HONG KONG--(BUSINESS WIRE)--AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of CTBC Insurance Company Ltd (CTBC Insurance) (Taiwan).

These Credit Ratings (ratings) reflect CTBC Insurance’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect the parental support CTBC Insurance receives from its intermediate parent, Taiwan Life Insurance Company Limited (Taiwan Life), as well as its ultimate parent, CTBC Financial Holding Co., Ltd (CTBC Holding), in terms of capital, business development and risk management.

The outlook revision to positive from stable reflects AM Best’s expectation that CTBC Insurance will continue to deliver positive operating earnings, supported by strong premium growth, improved underwriting profitability and stable investment results. The company has benefited from the profitable business sourced from its affiliated channels and is expected to further expand business lines with higher margins and moderate loss volatility, such as casualty and personal lines.

CTBC Insurance reported positive operating results in 2024 and through the first three quarters of 2025, supported by stable investment returns and improved underwriting results. In 2024, the company achieved the highest premium growth in the domestic non-life market, in terms of gross premiums written (GPW). Voluntary motor and commercial lines contributed to the company’s strong top-line performance. The growth momentum is expected to sustain in the next three years based on CTBC Insurance’s business plan. The company has benefited from distribution collaborations with the affiliated companies, namely Taiwan Life and CTBC Bank, and its personal lines business has recorded improved underwriting profits, albeit partially offset by underwriting losses in its commercial lines. CTBC Insurance’s operating expenses remain elevated relative to its small premium base.

CTBC Insurance’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 continued to expand, buoyed by positive earnings and full profit retention. The company’s investment portfolio remains conservative, with the majority of assets invested in cash and highly rated fixed-income instruments. The company’s comprehensive reinsurance programme is placed with a reinsurer panel of good credit quality. CTBC Insurance’s regulatory risk-based capital ratio declined moderately at the end of June 2025, due to a planned business expansion, but still remained well above the regulatory minimum.

CTBC Insurance’s market presence remains modest in Taiwan’s non-life insurance segment, a well-developed and competitive marketplace. The company attained a 1.2% market share of GPW in 2024 and ranked 14th in the non-life segment. The company leverages its distribution network and capabilities of its life agency force with Taiwan Life, as well as the bancassurance arrangement with CTBC Bank. In addition, CTBC Insurance has established partnerships with digital platforms to reach new customer segments and expand its personal lines business. AM Best views CTBC Insurance’s current risk management capability as being appropriate to support its risk profile. The company has strengthened its risk management capabilities following significant pandemic-related losses.

CTBC Insurance has been a beneficiary of parental support from Taiwan Life and CTBC Holding. The company shares the well-recognised brand name. Going forward, AM Best expects CTBC Insurance to benefit from potential synergies on cross-selling and continued support in terms of capitalisation, risk management and operations.

Positive rating actions could occur if CTBC Insurance successfully realises its business plan and demonstrates sustainable improvement in operating performance while maintaining the strong balance sheet strength assessment. Negative rating actions could arise if there is a material decline in CTBC Insurance’s risk-adjusted capitalisation, for example, due to a much faster-than-expected expansion in underwriting that outpaces capital growth. Negative rating actions also could occur if Taiwan Life experiences a significant deterioration in its credit fundamentals that AM Best views as having a material negative impact on CTBC Insurance.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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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.

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