AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of Dah Sing Insurance Company Limited (DSI) (Hong Kong). Concurrently, AM Best has revised the outlook of these Credit Ratings (ratings) to stable from positive.

These ratings reflect DSI’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the parental support DSI receives from Dah Sing Financial Holdings Limited (DSFH) in terms of capital, brand recognition, business development, product distribution, investment expertise, risk management and operations.

The upgrading of DSI’s ratings reflects sustained improvement in its business profile, supported by its strengthened market position and significant profitable growth over the last five years, with a more balanced and diversified underwriting portfolio. The company’s gross premiums written (GPW) recorded a cumulative growth of 75% from 2021 to 2025, driven by strategic expansion in motor, accident and health, and employees’ compensation lines. In addition, DSI has been rebalancing its underwriting portfolio by expanding the property damage business and focusing on small to medium-sized enterprise clientele, which protects the company from large catastrophic losses and enhances the stability of its underwriting performance. Amid Hong Kong’s competitive soft market, the company is prudently expanding its offshore inward reinsurance portfolio, further enhancing geographic diversification with controlled catastrophe risk exposure. Under its business plan, DSI is expected to maintain healthy growth through new initiatives in the medium term, positioning it competitively in the Hong Kong non-life insurance market. The company’s GPW is produced through diversified distribution channels, with the majority of business sourced from corporate intermediaries, followed by bancassurance supported by the affiliated Dah Sing Bank.

DSI’s risk-adjusted capitalisation remained at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s reported capital and surplus (C&S) recorded double-digit growth in 2025, as well as during the first half of 2026, owing to full profit retention and growth of the valuation of equity investments, which were measured at fair value through other comprehensive income (OCI). DSI maintains a moderately high proportion, yet well-diversified equity investment portfolio. AM Best expects DSI to implement robust investment selection and diversification strategies, as well as appropriate investment controls, to mitigate the high investment risk exposure.

DSI remained profitable in 2025, and during the first half of 2026, with an adjusted return on C&S, including gains or losses both through profit or loss and OCI, of 18.5% in 2025, mainly supported by favourable investment results in tandem with the buoyant capital market conditions during the year. Under HKFRS 17, DSI’s net-net combined ratio remained favourable at 90.3% in 2025, underpinned by disciplined underwriting and continuous expense control.

Negative rating actions could occur if there is a material deterioration in DSI’s balance sheet strength fundamentals due to large investment losses or a significant increase in risk exposure. Negative rating actions are also possible if DSFH’s credit profile deteriorates materially or if the holding company reduces the level of support it provides to DSI. Although unlikely in the intermediate term, positive rating actions could occur if DSI demonstrates a sustained improvement in its operating performance.

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.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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