Sun Hung Kai Properties Insurance ‘okay’ despite lower 2025 profit: AM Best

It has been reducing high-risk investment exposure and has a strong liquidity position.

Sun Hung Kai Properties Insurance Limited (SHKPI) (Hong Kong) retains a strong balance sheet despite lower profit in 2025, according to AM Best.

The insurer achieved its strongest level of risk-adjusted capitalisation at the end of fiscal year 2025, which ended on 30 June last year.

“The company has been reducing its exposure on high-risk investment classes, including real estate sector bonds and loans securities, while applying a more prudent investment strategy that focuses on cash and high-grade fixed income assets,” AM Best wrote in a report on 20 March 2026.

Other supporting factors include the company’s strong liquidity position, healthy solvency ratio and appropriate reinsurance programme, it said.
Despite a lower profit in 2025, driven by less underwriting and investment income, the company achieved a return-on-equity ratio of 9.9%, AM Best said.

SHKPI notably continues to benefit from its group-related business with better quality and minimal acquisition exposure. This enables SHKPI to outperform the market in terms of underwriting results.

SHKPI’s investment performance is expected to stabilize in the short to medium term, supported by a stable stream of interest and dividend income, AM Best said.

“With a focus on commercial business and employees’ compensation insurance, SHKPI benefits from its parental network to write a major part of its business from associated and subsidiary companies, and it continues to operate in a low acquisition cost business model,” AM Best said.