Sun Life Hong Kong (Sun Life HK) has announced its receipt of approval from the Hong Kong Insurance Authority for the early adoption of the risk-based capital (RBC) regime.
This places Sun Life HK among the few insurers in Hong Kong to have transitioned to the RBC regime ahead of schedule, a feat which the insurer touted as underscoring its robust risk management capabilities and financial stability.
The RBC regime offers a significant advantage by unlocking surplus capital through effective risk management and a diversified insurance product portfolio. This liberated capital serves as a sturdy foundation, enabling insurers who have adopted the regime to seize future growth opportunities.
Taking effect at the end of June this year, the new solvency capital basis introduced by the RBC regime provides a more transparent and precise reflection of Sun Life HK’s genuine financial position and economic value.
“The implementation of the new RBC regime has further enhanced Hong Kong’s capital regime, representing a significant step towards fostering the long-term development of the insurance industry and deepening Hong Kong’s position as an international financial centre. We take great pride in receiving regulatory approval for early adoption of RBC and are grateful for the tremendous efforts of our teams over the past year,” Sun Life HK CEO Clement Lam said.
The insurer’s early adoption comes amid higher underlying earnings in Q2 for the whole group, a feat which Sun Life Financial attributed to strong insurance sales and momentum built from partnerships and acquisitions.