AM Best Affirms Credit Ratings of Fubon Insurance Co., Ltd.
- November 13, 2026 09:06 AM (EST)
//BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Fubon Insurance Co., Ltd. (Fubon Insurance) (Taiwan). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Fubon Insurance’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management.
Fubon Insurance’s balance sheet strength assessment has been revised to the very strong level from the strong level, primarily driven by strengthened risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s consolidated reported capital and surplus (C&S) had a double-digit growth rate in 2025, and through the first half of 2026, reaching TWD 39.5 billion, due to the partial retention of positive underwriting and investment results. Fubon Insurance’s pandemic-related reinsurance recoverables, which previously triggered uncertainty in credit risks, were fully settled with the counterparty in late 2025. Additionally, the prior uncertainty surrounding deferred tax assets generated from pandemic-related insurance losses has also been largely alleviated. However, the company’s risk-adjusted capitalisation has not recovered to pre-COVID-19 pandemic levels, based on its latest financial information.
Other supportive factors in the balance sheet strength assessment include Fubon Insurance’s diversified investment portfolio, which focuses on low-risk fixed-income securities, comprehensive reinsurance arrangements and adequate liquidity. The company also benefits from enhanced financial flexibility and long-term capital support from its parent company, Fubon Financial Holding Co., Ltd. (Fubon Financial Holding).
Fubon Insurance reported a net profit of TWD 7.4 billion in 2025. The company’s gross premium written grew at a mid-single-digit rate in 2025, driven primarily by its expansion in the motor and engineering lines. The company’s combined ratio improved significantly to 88.5% in 2025, on par with the industry average, supported by favourable loss experience and a lower expense ratio. In the prior year, the company’s expense ratio was elevated by a material bad debt provision for pandemic-related reinsurance recoverables. Additionally, Fubon Insurance achieved a strong net profit of TWD 5.7 billion during the first half of 2026, attributable to its favourable underwriting performance and the investment return derived from capital gains.
Fubon Insurance maintains its market-leading position in Taiwan’s non-life industry, with a market share of 24.6% during the first nine months of 2026, based on direct premiums written. The company continues to leverage the business network of its parent group in sourcing business, while maintaining a moderately diversified underwriting portfolio in terms of products.
Positive rating actions could occur if there is a material and sustained improvement in Fubon Insurance’s balance sheet strength assessment. Positive rating actions also could occur if Fubon Insurance is able to achieve sustained and favourable development in its operating performance. Negative rating actions could occur if there is a substantial deterioration in Fubon Insurance’s balance sheet strength assessment, and without timely capital support from Fubon Financial Holding.
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 (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) 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 specializing 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.