A.M. Best has affirmed the Financial Strength Rating of A(Excellent) and the Long-Term Issuer Credit Rating of "a" ofTaiping Reinsurance Co.Ltd. (Taiping Re) (Hong Kong) and its wholly owned subsidiary,Taiping Reinsurance (China) Company Ltd. (Taiping Re China) (China). Theoutlook of these Credit Ratings (ratings) is stable.
The ratings of Taiping Re and Taiping Re China reflect theirsolid consolidated risk-adjusted capitalization, profitable operating results,and diversified business profile by expanding into life reinsurance andoverseas non-life reinsurance segments. The ratings also acknowledge thecapital contributions and operational support received from their parent, ChinaTaiping Insurance Holdings Company Limited (CTIH).
To support the growth of its life reinsurance business andthe establishment of the Taiping Re China subsidiary, CTIH has made severalrounds of capital injections to Taiping Re since 2012, increasing its capitaland surplus to HKD 6.7 billion (USD 864 million) at the end of June 2016.Taiping Re's consolidated risk-adjusted capitalization, as measured by Best'sCapital Adequacy Ratio (BCAR), is expected to be at a solid level despite thestrong premium growth in the life reinsurance segment.