AM Best observes that it surpassed its industry rivals as well.
Shun Heng Kai Properties Insurance
It is anticipated that Limited (SHKPI) will maintain financial stability, bolstered by its robust balance sheet and consistent operational performance, as per the report.
AM Best
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The company’s risk-adjusted capitalization stayed at the highest strength level as of the fiscal year ending June 30, 2024.
A move toward cash and top-tier bonds has further bolstered its financial standing, cutting down its involvement with China’s property market.
AM Best anticipates that this cautious approach to investments will assist SHKPI in absorbing possible market fluctuations.
SHKPI has sustained robust underwriting profitability, surpassing its industry counterparts. During the fiscal year 2024, the company achieved a double-digit return on equity, thanks to favorable underwriting outcomes and increased investment gains, which were further supported by escalating interest rates.
AM Best expects the firm to keep profiting from its parent organization’s operations, offering consistent premium revenue and reducing acquisition expenses.
Although SHKPI has a relatively small presence in Hong Kong’s overall general insurance sector, its concentration on commercial and employee liability insurance, combined with its cost-efficient approach, contributes to consistent profit stability.
AM Best anticipates that these elements will maintain SHKPI’s robust financial position in the short term.