Strong Profitability Expected for Shinkong Insurance
Shinkong Insurance Company is anticipated to continue its strong profitability, supported by its robust underwriting performance and steady investment returns, as reported by AM Best. The insurer has demonstrated solid net technical results over the past two years, outperforming both historical trends and its peers. In 2024, Shinkong Insurance’s net income constituted 16.4% of Taiwan’s domestic non-life insurance sector’s total profits, making it the highest in the industry.
AM Best highlighted that the company achieved a five-year average return on equity of 13.1% and a 2024 return on premium of 20.6%, both exceeding industry averages. Despite dividend payments in 2024, Shinkong Insurance’s risk-adjusted capitalization remains at its strongest level, bolstered by organic earnings growth and a healthy statutory risk-based capital ratio. The company’s capital strength is further reinforced by its conservative investment strategy and comprehensive reinsurance program with well-rated partners.
With profitability metrics surpassing most domestic peers and a stable capital base, AM Best’s revised credit outlook reflects confidence in Shinkong Insurance’s ability to maintain strong operating performance in the near term. The insurer’s significant market share, accounting for 16.4% of Taiwan’s domestic non-life sector, underscores its prominent position in the industry.
