AM Best Affirms Credit Ratings of China Shipowners Mutual Assurance Association
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of China Shipowners Mutual Assurance Association (China P&I or the Club) (China). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect China P&I’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.
AM Best expects China P&I’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), to remain at the strongest level over the short to intermediate term, supported by very low underwriting leverage and consistent earnings retention. The Club’s consolidated capital and surplus (C&S) decreased moderately in 2025, primarily due to a downward revaluation of its long-term equity investments in the China Minsheng Banking Corp., Ltd (CMBC). The adjustment highlights the Club’s capital sensitivity to its concentrated exposure to this investment, although the overall impact is assessed as moderate and non‑recurring. Excluding this investment exposure, the Club’s C&S compares favourably with the upper tier of the International Group P&I Clubs. AM Best expects the Club’s prudent reserving practices for long‑tail protection and indemnity (P&I) liabilities and its well-structured reinsurance programme to remain supportive of its strongest level of balance sheet strength assessment. China P&I’s liquidity profile remains strong.
