AM Best Affirms KBFG China Credit Ratings

KUALA LUMPUR, March 16 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of KBFG Insurance (China) Co Ltd (KBFG China) with a stable outlook.

In a statement, AM Best said these credit ratings (ratings) reflect KBFG China’s very strong balance sheet strength, adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also factor in broad support from its parent company, KB Insurance Co Ltd, including underwriting and pricing, business development, reinsurance and risk management.

KBFG China’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio. The company’s consolidated capital and surplus have increased, backed by positive operating performance with full profit retention.

The company’s statutory core solvency ratio rose to 671 per cent at end-2025, from 501 per cent in 2024, following the settlement of sizeable reinsurance recoverables.

KBFG China has reported operating profits for the past five years (2021 to 2025), though its top-line performance declined for a third consecutive year in 2025 due to reduced client exposures and rate reductions amid favourable loss experience.

Nevertheless, underwriting profitability has remained stable, supported by low acquisition costs and positive reinsurance commission income.

As a foreign-owned insurer focused on serving Korean businesses overseas, KBFG China maintains a niche competitive position, although its share of China’s non-life insurance market remains below one per cent.

-- BERNAMA