Credit rating agency AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of ZhongAn Online P & C Insurance Co., Ltd. (ZhongAn) (China).
The positive outlook is primarily driven by the improving trend in ZhongAn’s operating performance.
After returning to overall profitability in 2023, the company is expected to continue delivering profits, supported by a combination of positive underwriting and investment performance.
Crucially, the performance of the company’s non-insurance segments – technology and banking – has also shown stabilisation, reaching breakeven in 2024 and as of June 2025, respectively.
AM Best anticipates this stabilisation to contribute to greater overall earnings stability.
In addition to its operating performance, ZhongAn continues to boast a robust financial position, with a balance sheet strength assessed as “Very Strong”, underpinned by the “strongest” level of risk-adjusted capitalisation as measured by Best’s Capital Adequacy Ratio (BCAR).
Additionally, the company’s capital and surplus continued its growth momentum, reaching RMB 21.6 billion (USD 2.95 billion) as of June 2025. This is expected to increase further by over 15% following a new shares insurance in July 2025.
With a business profile assessed as favorable, AM best continues to view ZhongAn as a leader in innovation.
As China’s first online-only P&C insurer, the company has leveraged its technological capabilities to issue high-volume, industrialised digital policies across various lines, including accident and health, and motor.
ZhongAn has cemented its market presence, increasing its domestic market share to 2.0% in terms of direct premiums written and improving its ranking to the eighth-largest P&C insurer in China in 2024.
According to the rating agency, positive rating actions could occur if the company demonstrated that its improved operating performance is sustainable over the long term.
Conversely, a material decline in risk-adjusted capitalisation, adverse deviation from its business plan, or a weakening of key shareholder partnerships could lead to negative rating actions.
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