KBFG Insurance (China) Co., Ltd. (KBFG China) is executing a new strategic plan aimed at regaining business momentum following a decline in top-line performance for the third consecutive year in 2025. Despite shrinking premium volumes, the company’s financial stability and investment returns are expected to remain key drivers of overall operating results.
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Stable Underwriting Performance
According to AM Best, KBFG China maintained stable underwriting profitability even as premium income fell. This resilience is attributed to low acquisition costs and positive income from reinsurance commissions, which helped offset the impact of reduced premiums.
The decline in premium volumes was largely due to lower client exposures and rate reductions after a period of favourable loss experience. Nevertheless, the company successfully maintained steady underwriting profits, demonstrating the effectiveness of its cost management strategies and reinsurance arrangements.
Investment Returns Remain a Key Driver
AM Best highlights that investment returns are expected to continue contributing significantly to the company’s overall operating results. KBFG China’s prudent investment strategy, combined with disciplined risk management, has helped sustain operational stability during periods of slower top-line growth.
Strengthened Capital Position
As KBFG China enters 2026, its robust capital position remains a core strength. The company’s statutory core solvency ratio increased markedly, rising from 501% in 2024 to 671% by the end of 2025. This improvement reflects the planned settlement of large reinsurance recoverables and effective balance sheet management.
The strong solvency level provides flexibility to pursue growth initiatives while withstanding potential market volatility, reinforcing the company’s financial resilience.
| Key Financial Indicators | 2024 | 2025 |
|---|---|---|
| Premium Volume Growth | – | Declined for 3rd consecutive year |
| Underwriting Profitability | Stable | Stable |
| Acquisition Costs | Low | Low |
| Reinsurance Commission Income | Positive | Positive |
| Statutory Core Solvency Ratio | 501% | 671% |
Strategic Outlook
Management emphasises the importance of sustaining investment-led returns while implementing strategies to revive premium growth in 2026 and beyond. The company plans to selectively expand client exposures and adjust rates prudently to balance profitability with market competitiveness.
AM Best underscores that the company’s capital strength remains a central advantage, providing confidence in its ability to absorb shocks and maintain stable operations. By combining stable underwriting results, disciplined cost management, and consistent investment performance, KBFG China is well-positioned to strengthen its market standing and enhance overall business momentum.
Conclusion
Although top-line growth remains a challenge due to reduced premium volumes, KBFG China’s strong financial foundation and reliance on consistent investment returns are expected to continue supporting solid operating results. As the company enters 2026, management is focused on executing strategic initiatives to rebuild growth while leveraging its capital strength and operational efficiency.