Hong Leong Insurance (Asia) Limited (HLIA) is expected to maintain its strong underwriting profitability, with a positive outlook for its financial performance, according to AM Best. The company’s balance sheet remains robust, supported by the highest level of risk-adjusted capitalisation as of the fiscal year ending 30 June 2024 (FY 2024).
HLIA has achieved moderate growth in capital and surplus while maintaining low underwriting leverage. Its solvency ratio continues to be well above regulatory requirements, ensuring financial stability. However, AM Best notes that the company’s reliance on reinsurance and its concentrated investments in real estate remain areas for ongoing monitoring.
The company’s underwriting profitability is expected to persist, driven by double-digit growth in gross premiums written for FY 2024, bolstered by a recovery in domestic helper and travel insurance segments. HLIA has also focused on enhancing operational efficiency, which is expected to stabilise its expense ratio and further improve underwriting margins.
In terms of investment strategy, HLIA’s shift towards fixed-income securities is expected to reduce volatility compared to its previous exposure to listed equities, providing a more stable investment outlook.
Although HLIA’s market share in Hong Kong’s general insurance sector remains modest, the company has been expanding its presence in the commercial lines market through broker channels, positioning itself for future growth.
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