[RATING ACTION] Fitch affirms Fidelidade Macau’s IFS Rating at ‘A’; Outlook Stable

On November 11, 2025, the American financial rating agency Fitch Ratings (“Fitch”) announced the affirmation of Fidelidade Macau – Insurance Company Limited’s Insurer Financial Strength (IFS) Rating at ‘A’ (Strong), with a Stable Outlook. This rating continues to be among the highest in the Macao Special Administrative Region and reflects the company’s robust financial position and strategic importance within the Fidelidade Group

Fitch’s affirmation is based on several key drivers:

◊ Strong Capital Position – Fidelidade Macau maintained an Extremely Strong Prism Global Model Score at end-2024, supported by accumulated share capital of MOP288 million. The statutory solvency ratio stood at 716%, well exceeding the regulatory minimum of 150%. The company has retained earnings to further strengthen its capital position in preparation for Macao’s upcoming risk-based capital regime, scheduled for implementation preliminary in 2028.

◊ Improved Profitability – Return on equity (ROE) rose to 9.8% in 2024, supported by favourable investment performance, despite normalization of gross written premiums following a large construction project in 2023.

◊ Conservative Investment Strategy – Fidelidade Macau continues to maintain a prudent portfolio, with a risky-asset ratio of 8% and all bonds were investment grade. Liquidity remains strong, with a liquid asset/reserve ratio above 600% for the past three years.

◊ Strategic Importance to Parent – Fitch applied a one-notch uplift to Fidelidade Macau’s standalone credit quality of ‘a-’, reflecting its designation as a Very Important operating subsidiary of Fidelidade – Companhia de Seguros, S.A. (IFS Rating: A+/Stable). Fidelidade Macau is the sole non-life insurer under the Fidelidade brand in Asia-Pacific, underscoring its strategic role in the group.

Commenting on the announcement, Mr. Filipe Serrano, Chief Executive Officer of Fidelidade Macau, said: “This affirmation by Fitch reinforces the strength of our capital base and the resilience of our business model. It reflects our ability to adapt to evolving market conditions while maintaining disciplined risk management. As part of the Fidelidade group, we remain focused on delivering sustainable growth and long-term value for our customers and stakeholders in Macao.”

Mr. Ivan Cheung, Executive Director of Fidelidade Macau, added: “The rating highlights the confidence Fitch places in our financial stability and profitability. It also recognizes our prudent investment approach and strategic role within the group. Looking ahead, we will continue to strengthen our market presence and provide protection solutions that meet the needs of individuals, families, and businesses.”

To find out more about this assignment you can access Fitch’s Announcement here.