AM Best assigns a Financial Strength Rating of 'A-' (Excellent) and a Long-Term Issuer Credit Rating of 'a-' (Excellent) to SAIC Motor Insurance Limited (SAIC Captive). The outlook assigned to the ratings is stable. The ratings reflect SAIC Captive'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. Incorporated in 2025 in Hong Kong, SAIC Captive is a single-parent captive of SAIC Motor Corporation Limited (SAIC Motor), the largest state-owned motor manufacturer in China. SAIC Motor is majority owned by Shanghai Automotive Industry (Group) Co., Ltd. (SAIC Group), the ultimate parent, which is wholly owned by the Shanghai municipal government. SAIC Captive serves as a dedicated risk management and insurance arm of SAIC Motor. During its start-up phase, the captive primarily focuses on underwriting individual motor liabilities for SAIC Motor-produced vehicles, encompassing motor extended warranty, product replacement coverage and expense reimbursement insurance, while prudently retaining group-related commercial risks. The very strong balance sheet strength assessment is supported by initial capital of US$49 million and a risk-adjusted capitalisation level, as measured by Best's Capital Adequacy Ratio (BCAR), which is projected to remain at the strongest level according to the captive's initial five-year plan covering 2026 to 2030. SAIC Captive projects moderate early-stage underwriting losses due to upfront start-up expenses but expects a turnaround within the first five years of operation. AM Best notes that negative rating actions could occur if operating performance materially deviates from the business plan, or if reduced support from SAIC Motor hinders business execution. Positive rating actions could occur if the captive demonstrates sustained and favourable results.
