BERNAMA – Cathay Century Credit Ratings Affirmed As Excellent

KUALA LUMPUR, Sept 17 (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 Taiwan’s Cathay Century Insurance Company Limited (Cathay Century).

The outlook of these credit ratings (ratings) is stable, reflecting Cathay Century’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

As the second-largest insurer in Taiwan’s non-life sector, Cathay Century posted double-digit growth in consolidated adjusted capital and surplus (C&S) of TWD18.4 billion at year-end 2024, buoyed by the net profit derived from underwriting and investment results. (TWD100 = RM13.94)

According to AM Best in a statement, Cathay Century’s consolidated adjusted C&S declined moderately due to an unrealised capital loss in other comprehensive income and a dividend payout during the first half of 2025.

However, AM Best expects the company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, to remain at a robust level over the short to intermediate term, supported by organic growth in retained earnings from controlled expansion in underwriting and investment risks.

Other supportive factors of the balance sheet strength assessment include the company’s diversified investment portfolio, which focuses on low-risk fixed-income securities, good liquidity, comprehensive reinsurance arrangements and the strong financial flexibility afforded by the ultimate parent, Cathay Financial Holding Co Ltd.

Underpinned by the favourable technical results from the underwriting portfolio and positive investment returns, Cathay Century reported a net profit of TWD2.6 billion last year and maintained that good momentum into the first half of 2025.

With a market share of 13.6 per cent in terms of direct premiums written (DPW) in 2024, Cathay Century’s underwriting portfolio is diversified moderately, with motor being a major line of business, accounting for half of its DPW, followed by fire, accident and health businesses.

— BERNAMA

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