China: P&C Insurers See Combined Ratios Above 100%, But Losses Moderate
Beijing, 14 March 2025 – A new report reveals that the majority of Property & Casualty (P&C) insurance companies in China faced challenging financial conditions in 2024.
Underwriting losses persisted for non-listed P&C insurers, although there was a general trend toward improvement. While 54 out of 74 companies analyzed reported a combined ratio above 100%, this represents a slight improvement compared to the previous year. The combined ratio is a key metric in the insurance industry, indicating the proportion of premiums paid out as claims and expenses. A ratio above 100% signifies that an insurer is paying out more than it is receiving in premiums.
The data indicates that 37 insurers fell within the 100%-110% range, a rise of ten compared to the prior year, which suggests a broader distribution of loss ratios. Furthermore, only eight insurers exceeded a combined ratio of 120%, a reduction of six compared to 2023.
This data suggests that while the P&C insurance sector in China remains under pressure, some positive movements are occurring, and overall losses are easing in the sector.
Note: The full report is available to eChina subscribers.
