AM Best Affirms Credit Ratings of Nan Shan General Insurance Co., Ltd.

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Nan Shan General Insurance Co., Ltd. (Nan Shan General) (Taiwan). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Nan Shan General’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Nan Shan General’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), has continued to improve moderately and was assessed as being at the strongest level at year-end 2025. The improvement was mainly driven by consistent earnings growth and partial profit retention. AM Best expects Nan Shan General to maintain its balance sheet strength assessment over the medium term, supported by an insurance risk profile characterised by personal lines and small- to medium-sized commercial accounts, prudent investment allocations and a sound reinsurance programme placed with highly rated reinsurers. Offsetting balance sheet strength factors include Nan Shan General’s modest absolute capital base and a moderately high dividend payout ratio, which is expected to contribute to a slower pace of organic growth in the company’s capital and surplus over the intermediate term.

Nan Shan General reported favourable operating results in 2025, supported by improved underwriting and stable investment performance. The company's premium growth rate has outpaced the industry average for three consecutive years, mainly driven by expansion in the voluntary motor, travel and commercial lines. Positive underwriting margins in voluntary motor business and strong growth in travel insurance have contributed to enhanced profitability of its personal lines segment, which represents approximately 74% of the underwriting book, as measured by gross premiums written. In 2025, the company’s net operating expense and combined ratios edged down to 37.2% and 90.0%, respectively, representing the lowest levels for both metrics over the last five-year period, based on AM Best’s calculations. The company’s return on equity remains at a double-digit level.

Nan Shan General’s investment performance has shown continued improvement, largely driven by capital gains in equity investments. The company’s bond portfolio has contributed a steady stream of interest income, which helped stabilise its investment performance. AM Best expects Nan Shan General to continue to focus on domestic fixed-income securities and maintain moderate exposure to equity securities with an aim to boost overall investment returns.

Nan Shan General is a wholly owned subsidiary of Nan Shan Life Insurance Co., Ltd. (Nan Shan Life), which is the third-largest life insurer in Taiwan in terms of total assets. While Nan Shan General’s business scale is modest within Nan Shan Life, the company benefits from parental support in terms of the shared brand recognition, strong distribution synergy and capital commitments.

Negative rating actions could occur if there is a substantial deterioration in Nan Shan General’s balance sheet strength. Positive rating actions could occur if Nan Shan General demonstrates sustainable improvement in operating performance while maintaining its very strong balance sheet strength assessment. Although deemed unlikely over the short term, positive rating actions also could arise if Nan Shan General successfully executes its business plan with continued strong parental support, while Nan Shan Life’s credit fundamentals remain stable.

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, Best’s Performance Assessments, Best’s Preliminary Credit Assessments 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 specialising 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. For more information, visit www.ambest.com.

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