On 23 October, COSCO SHIPPING Property Insurance Captive Company Limited (COSCO SHIPPING Captive) disclosed its Q3 2026 solvency report summary through the Insurance Association of China. As at end-September 2026, its core solvency ratio stood at 373.81% and its comprehensive solvency ratio at 389.96%, down 28.5 and 28.69 percentage points respectively from the end of the previous quarter, yet still comfortably above regulatory requirements.
The solvency statement shows that as at 30 September 2026, actual capital was RMB 2.602 billion, down RMB 64 million from RMB 2.666 billion at the end of Q2, while minimum capital rose RMB 30 million to RMB 667 million from RMB 637 million. Recognised assets totalled RMB 6.919 billion and recognised liabilities RMB 4.317 billion, giving a core solvency surplus of RMB 1.827 billion and a comprehensive solvency surplus of RMB 1.935 billion. The report projects core and comprehensive solvency ratios of 387.96% and 404.23% respectively by the end of the next quarter.
Insurance revenue of RMB 682 million in the first nine months
On operations, the company wrote insurance revenue of RMB 682 million in the first three quarters of 2026, of which RMB 65.75 million came in Q3 alone, and net profit of RMB 74.50 million, of which RMB 24.30 million was earned in Q3. At end-September, total assets were RMB 6.936 billion, net assets RMB 2.619 billion and insurance contract liabilities RMB 3.561 billion. Return on equity for the nine months was 2.84% and return on assets 1.12%, while both investment yield and comprehensive investment yield were 0.53%.
By business mix, written premiums for the nine months were RMB 650 million. The top five non-motor lines together accounted for RMB 649 million, with the largest single line writing RMB 574 million, or 88.31% of written premiums; motor premiums were zero. By distribution channel, direct sales contributed RMB 437 million and brokers RMB 212 million, while agency business was nil.
The report also discloses a cumulative combined ratio of 704.16% for the nine months, comprising an expense ratio of 1302.9% and a loss ratio of minus 598.73%. These figures differ materially from those of conventional property insurers, and the report offers no explanation of their cause or calculation basis.
Risk rating at AAA for two consecutive quarters
On risk, the report states that the company's two most recent comprehensive risk ratings (classified supervision) were AAA for Q4 2025 and AAA for Q1 2026. It also confirms that neither the company nor its directors and senior managers were subject to administrative penalties or regulatory measures by the financial regulators during the quarter.
Public information shows that COSCO SHIPPING Captive was established on 8 February 2017 as a wholly owned subsidiary of China COSCO Shipping Corporation Limited, with registered capital of RMB 2 billion and its registered address in the China (Shanghai) Pilot Free Trade Zone. It is the first shipping captive in China. Its licensed business covers property damage insurance, liability insurance, credit and surety insurance, short-term health and personal accident insurance for the group and its member companies, reinsurance of the above, insurance fund investment as permitted by laws and regulations, and other business approved by the insurance regulator.
For a captive, where business originates almost entirely inside the group, the solvency ratio mainly reflects the match between retained group risk and capital. The decline this quarter was driven jointly by a reduction in actual capital and an increase in minimum capital; the report does not disclose more granular drivers of the change.
