KBFG Insurance (China) Co., Ltd. (KBFG China) is pursuing a new strategic plan to regain business momentum after experiencing a decline in top-line performance for the third consecutive year in 2025. Despite shrinking premium volumes, the company’s financial stability and consistent investment returns are expected to remain central drivers of overall operating results.
Stable Underwriting Performance
According to AM Best, KBFG China has maintained steady underwriting profitability even as premium income fell. This resilience is attributed to low acquisition costs and positive income from reinsurance commissions, which have helped offset the impact of reduced premiums.
The decline in premium volumes was primarily caused by lower client exposures and rate reductions following a period of favourable loss experience. Nevertheless, the company successfully maintained stable underwriting profits, demonstrating the effectiveness of its cost management strategies and reinsurance arrangements.
Investment Returns Remain a Key Contributor
AM Best highlights that investment returns will continue to play a pivotal role in supporting the company’s operating results. KBFG China’s prudent investment approach, combined with disciplined risk management, has helped sustain operational stability even during periods of slower top-line growth.
Strengthened Capital Position
As KBFG China enters 2026, its robust capital position remains a core advantage. The company’s statutory core solvency ratio rose substantially, from 501% in 2024 to 671% by the end of 2025. This improvement was largely driven by the planned settlement of large reinsurance recoverables and effective balance sheet management.
This strong solvency provides the company with the flexibility to pursue growth initiatives while withstanding potential market volatility, reinforcing overall 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 has emphasised the importance of sustaining investment-led returns while pursuing initiatives to revive premium growth in 2026 and beyond. The company intends to selectively expand client exposures and adjust rates prudently to balance profitability with market competitiveness.
AM Best also notes that KBFG China’s capital strength remains a fundamental advantage, instilling confidence in its ability to absorb potential shocks and maintain stable operations. By combining steady 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 the company faces challenges in top-line growth due to declining premium volumes, its strong financial foundation and reliance on consistent investment returns are expected to continue driving solid operating performance. As KBFG China moves into 2026, management remains focused on executing strategic initiatives that rebuild growth, leverage capital strength, and optimise operational efficienc