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FOR IMMEDIATE RELEASE
HONG KONG - DECEMBER 19, 2025 08:34 AM (EST)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) of Min Xin Insurance Company Limited (MXIC) (Hong Kong).
These Credit Ratings (ratings) reflect MXIC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The revision of the outlooks to positive from stable reflects the stronger level of parental support that MXIC is expected to receive over the intermediate term. The expected parental support includes significant capital injections and profitable business expansions from group-related channels and risks.
MXIC is 100% owned by its immediate parent, Min Xin Holdings Limited (MXHL), a holding company listed via Hong Kong Stock Exchange for over 40 years. MXHL is majority owned by its ultimate parent, Fujian Investment & Development Group Co., Ltd. (FIDG), a Chinese state-owned enterprise and the investment platform of the Fujian provincial government. AM Best believes MXIC’s parents have sufficient capability to provide the expected explicit and implicit support.
AM Best believes the willingness to provide support is in place, and is evident by an escalated level of capital injections. The parent companies also support MXIC’s profitable expansion into group-related business. MXIC has recently established its new bancassurance partnership with an associated bank under MXHL that is located in Hong Kong. Besides leveraging the support from FIDG, the company is exploring inward business opportunities from FIDG-related risks in Chinese Mainland. If this materialises, such elevated, sustained parental support could enhance MXIC’s credit fundamentals over the longer term.
The company’s balance sheet strength assessment of strong is underpinned by its risk-adjusted capitalisation level, which was at the strongest level as of year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). Despite the limited size of its capital & surplus, MXIC has achieved substantial growth in its capital over the past decade, mostly attributable to capital injections and full retention of net profit. Other supporting factors include its healthy regulatory solvency position, good liquidity and appropriate reinsurance arrangements.
AM Best views MXIC’s operating performance as adequate. The company has maintained a stable top-line since 2022, and a positive bottom line over the years. In 2024, the company delivered a net profit of HKD 13.8 million with a return-on-equity ratio of 4.2%. The company’s profitable bottom line was primarily driven by a steady investment return, mainly supported by favourable interest and rental income. Conversely, MXIC’s underwriting profitability has been thin over the years, largely attributable to its high expenses relative to the small premium scale.
Established in 1974, MXIC is a long-standing player in Hong Kong and Macau’s non-life insurance markets. Whilst maintaining a diversified underwriting portfolio in property damage, motor, employees’ compensation, travel and accident, MXIC remains a small player in Hong Kong and a mid-sized player in Macau. As of year-end 2024, approximately 60% of its premium is generated from Macau, leveraging on its affiliated bancassurance channel in Macau to source profitable property fire business.
Positive rating actions could occur if the expected upscaled support that MXIC receives from its parent materialises and leads to a sustainable enhancement of its current credit fundamental. Negative rating actions could arise if there is material deterioration in the company's operating profitability or the risk-adjusted capitalisation.
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.