Shanghai: AM Best has assigned a financial strength rating of A (Excellent) and a long-term issuer credit rating of ‘a’ (Excellent) to Samsung Property and Casualty Insurance Company (China) Ltd (Samsung P/C China). The outlook for both credit ratings is stable.
According to BERNAMA News Agency, the global credit rating agency stated that the ratings reflect the insurer’s strongest balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management. Established in 2005, Samsung P/C China was a wholly owned subsidiary of Samsung Fire and Marine Insurance Co Ltd (SFM) until 2022. That year, Shenzhen Tencent Domain Computer Network Company Ltd (Tencent Domain), an affiliate of Tencent Holdings Ltd (Tencent), along with four minority shareholders, invested 1.95 billion Chinese yuan in the company.
Following the investment, Samsung P/C China continues to receive explicit and implicit support from SFM, including reinsurance backing, underwriting expertise, brand recognition, and business relationships with affiliated Samsung entities and Korean Interests Abroad (KIA) clients. The company also benefits from Tencent’s distribution network and online platforms, enhancing its market outreach and management oversight.
Samsung P/C China manages Samsung-affiliated businesses and KIA clients through its direct channel while leveraging Tencent’s platforms to grow shipping return, accident and health segments, in addition to partnering with brokers, agents, and third-party platforms. The company has posted consistent earnings in recent years, supported by premium growth in shipping returns and health insurance through Tencent’s WeSure platform. However, underwriting profitability has been under pressure due to higher loss ratios and operating costs.
The company maintains the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, backed by a conservative investment approach, sound liquidity, and a comprehensive reinsurance programme. Its capital position was strengthened after the shareholding change, with solvency ratios well above regulatory requirements.
Negative rating actions could arise from material deterioration in operating performance, weaker shareholder support, or reduced business and distribution contributions from major shareholders. Conversely, positive rating actions may be considered if the insurer delivers sustained strong operating results without weakening its balance sheet position.