AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of China United Property Insurance Company (CUPI) (China). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect CUPI’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management. The ratings also reflect the expected government support CUPI will receive from its ultimate parent, China Investment Corporation (CIC), the sovereign wealth fund of the Chinese government.

CUPI’s risk-adjusted capitalisation remained at the very strong level in 2025 and is projected to remain at a similar level over the short to intermediate term, as measured by Best’s Capital Adequacy Ratio (BCAR), including equity credit for its hybrid securities. In 2025, the company’s capital and surplus increased by 5.4%, amounting to RMB 19.5 billion (USD 2.78 billion) based on AM Best calculation. CUPI is of good financial flexibility with a track record of domestic debt funding in capital markets. Its 2025 adjusted financial leverage was 17.3% considering credit for its capital supplementary bonds computed by AM Best, while its interest coverage ratio is assessed as adequate. Its invested assets are diversified with controlled exposure to higher-risk assets. Partially offsetting factors include its relatively high underwriting leverage compared with domestic peers of similar size, large premium receivables from policy-driven agriculture insurance, and exposure to impairment of some legacy investments.

CUPI’s operating performance remains adequate, delivering an annual return on equity at mid-single digit over the past five years. The company’s top-line growth has exceeded industry average over the past few years, and it expects steady annual increment in the next three years. Its positive bottom line is supported largely by investment income, while its underwriting performance was close to breakeven over the years.

CUPI is a leading player in the agriculture insurance market of mainland China, which is among the largest agriculture insurance markets in the world. Its ranked fifth amongst domestic non-life peers with slightly over 4% overall market share and 12% market share in China’s agriculture insurance based on 2025 direct premium written. With its operating history dating back to 1986, the company has built a wide distribution network, extensive underwriting expertise and diversified product offerings. These factors, together with its robust government connections, allow CUPI to maintain its leading position in domestic policy-driven agriculture insurance and policy-driven health insurance, which account for over 30% of CUPI’s gross premium written in the past two years. The company maintains a strong focus on innovation, particularly in agriculture, which has enhanced its underwriting quality and operating efficiency.

The ratings also recognise the strategic importance of CUPI in providing nationwide inclusive agriculture insurance and support to the country’s national strategies. AM Best believes there is a high likelihood that CIC will provide support to CUPI, if needed. CIC is equipped with sound credit fundamentals and abundant financial resources. AM Best expects CUPI to benefit further from CIC’s implicit support, including operational, risk management and corporate governance.

Negative rating actions could occur if CUPI’s balance sheet strength were to weaken significantly. A sustained deteriorating trend in underwriting and operating performance also may result in negative rating actions. Although unlikely in the short to intermediate term, positive rating actions could occur if the company demonstrates sustained improvement in balance sheet strength, via non-debt issuance source.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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