Taipei: AM Best has affirmed the financial strength rating (FSR) of A (Excellent) and the long-term issuer credit rating (ICR) of 'a+' (Excellent) of Taiwan's Shinkong Insurance Company Limited (Shinkong Insurance), with a stable outlook. The credit ratings reflect Shinkong Insurance's very strong balance sheet strength, strong operating performance, neutral business profile, and appropriate enterprise risk management.

According to BERNAMA News Agency, AM Best expects the insurer's risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio, to remain at the strongest level in 2025 and prospectively. This expectation is supported by strong earnings generation, consistent capital management, prudent reserving, and a conservative investment strategy.

The insurer's operating performance remained robust, underpinned by a five-year weighted average return-on-equity of 14.8 per cent and a net combined ratio of 87.5 per cent from 2021 to 2025. In 2025, the company posted favourable results with its net combined ratio edging down to a record low of 82.2 per cent, driven by solid underwriting profitability.

The global credit rating agency stated that stable investment returns, strict underwriting discipline, and effective expense management are expected to continue supporting Shinkong Insurance's performance over the intermediate term.

Shinkong Insurance is Taiwan's third-largest non-life insurer by gross premiums written, with a moderately diversified underwriting portfolio led by motor insurance. Its developed risk management framework and stable distribution mix were also viewed as supporting factors in the ratings assessment.