S&P Global Ratings maintained Sun Hung Kai Properties Insurance's A- long-term local currency financial strength and issuer credit ratings, with a positive outlook, according to a Thursday release.

S&P expects the insurer to continue gaining support from its parent, Sun Hung Kai Properties (HKG:0016), given its moderately strategic importance to the group.

The rating agency upgraded the insurer's liquidity assessment to "exceptional" from "adequate," reflecting its increased liquid asset allocation.

S&P also cited the insurer's solid capital and earnings, underpinned by healthy underwriting margins, as factors in its affirmation.

The insurer's net income rose 27% to HK$210 million in the fiscal year through June 2024, anchored by robust underwriting profit and favorable investment returns.

The positive outlook indicates a potential upgrade within 12 to 24 months, especially if the insurer maintains steady earnings and frugal investment practices while continuing to benefit from its parent company's support, the rating agency said.

Meanwhile, volatile earnings due to a notable rise in investment risk could lead to an outlook revision to stable, S&P said.