Media365
China Taiping Insurance Holdings, whose Hong Kong subsidiary faces massive claims related to the Tai Po fire in November, is expected to post strong annual profit on an investment gain, according to a filing to the Hong Kong stock exchange on Monday.
Fitch Ratings, however, warned that the insurer’s earnings in 2026 could be affected by large claims related to the Wang Fuk Court inferno, the worst fire in Hong Kong in seven decades that killed 168 people, injured 79 and left an estimated 4,000 residents homeless.
The state-owned company expected its net profit to increase by 215 to 225 per cent “mainly due to the increase in net investment”, according to the filing. China Taiping, which made a net profit of HK$8.43 billion (US$1.1 billion) in 2024, will announce its earnings at the end of March.
The increased profit was also due to a one-off tax impact facilitated by a policy change for the insurance industry, the filing said.
China Taiping’s shares rose 6.4 per cent to HK$22.80 after the announcement, taking their overall gains since the fire to 29 per cent.
China Taiping Insurance (HK) has the largest exposure among its peers to Wang Fuk Court at over HK$2 billion. This includes potential claims for property damage, public liability, employee compensation, group personal accident and home contents.
