AM Best Revises Outlooks to Stable and Affirms Credit Ratings of Hyundai Insurance (China) Co., Ltd.

JULY 30, 2026 08:31 AM (EDT)

AM Best Revises Outlooks to Stable and Affirms Credit Ratings of Hyundai Insurance (China) Co., Ltd.

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FOR IMMEDIATE RELEASE

HONG KONG - JULY 30, 2026 08:31 AM (EDT)
AM Best has revised outlooks to stable from negative and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb" (Good) of Hyundai Insurance (China) Co., Ltd. (HIC) (China).

The Credit Ratings (ratings) reflect HIC's balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

The stable outlooks reflect AM Best's expectation that HIC will execute its latest business plan without material deviation, delivering sustained bottom-line improvement with controlled top-line growth while maintaining its very strong balance sheet strength assessment.

As measured by Best's Capital Adequacy Ratio, HIC's risk-adjusted capitalisation was at the strongest level as of year-end 2025 and is projected to remain so over the next three years based on the company's latest business plan. Since its shareholding changes in 2020, HIC has experienced consecutive years of operating losses from its rapidly growing insurance portfolio. This has imposed downward pressure toward its projected risk-adjusted capitalisation. Given its shift in focus to ride-sharing motor insurance since 2023, the company has demonstrated significant progress in underwriting transformation and delivered on its previous projections. AM Best expects HIC to continue delivering on its most recent business plan with moderate top-line growth and further improvement in underwriting results.

HIC's operating performance remains marginal; it continued to benefit from steady investment income from cash and fixed-income investments. Over the past few years, HIC has gradually reduced its underwriting losses, by leveraging its scale and using enhanced control over its insurance portfolio. With its sustained improvement in underwriting performance, HIC expects to turn this underwriting performance around in the next three years.

The company has established good market standing in the niche market of the ride-sharing motor insurance business in some of the regions where it operates. Nonetheless, HIC has remained small to medium-size player in China's non-life insurance market, and AM Best expects HIC's market presence to remain limited in the short to intermediate term.

Negative rating actions could occur if there is significant and adverse deviation in HIC's business execution compared with its business plan, leading to material deterioration in its risk-adjusted capitalisation. Negative rating actions also could arise if the company's operating performance materially deviates from its business plan and results in prolonged operating losses beyond AM Best's expectations. Positive rating actions could occur if HIC demonstrates sustained improvement in its operating performance that is better than its current business plan; for example, achieving a faster-than-expected turnaround and, while maintaining a supportive level of risk-adjusted capitalisation. AM Best will continue to monitor HIC's business execution.

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 (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) 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 specializing 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.