Fitch Ratings has stated that near-term claims for China Taiping Insurance Group Ltd. (TPG, A-/stable) are expected to rise following the recent Tai Po fire. Its Hong Kong subsidiary underwrites property and liability covers for Wang Fuk Court. Despite this, Fitch does not anticipate any change to the group’s rating outlook, citing state-linked support, diversified earnings, and reinsurance protection.
The agency expects TPG to manage claims and recoveries across its operations, limiting net losses. The group’s capital position remains strong, supported by the Fitch Prism Global model and solvency ratios above regulatory minimums. The fire damaged seven residential blocks, activating multiple policy types including property, public liability, employees’ compensation, group personal accident, and home contents. The total insured value is estimated at approximately HK$2.6 billion.
Affected insurers and reinsurers are likely to face higher claims and cash outflows over the next 12 months. Reinsurance is expected to mitigate the primary impact, although higher premiums, deductibles, and limited coverage may raise operating expenses.
The Hong Kong Insurance Authority and the Hong Kong Federation of Insurers are coordinating outreach and support for affected residents. Companies such as AIA, FWD, Chubb, Blue Cross, and Manulife are providing emergency financial aid, cash support, special arrangements, hotlines, and premium relief.
AJ