Taiping Insurance Faces $200 Million Loss from Hong Kong Fire Incident

Shares of China Taiping Insurance Holdings experienced a significant decline, dropping as much as 8% on Thursday, November 27. This downturn was primarily driven by concerns regarding the company’s exposure to a devastating fire at a Hong Kong apartment complex, which tragically resulted in the deaths of at least 55 individuals, with nearly 300 still unaccounted for.

The incident occurred at Wang Fuk Court, a densely populated residential estate located in the northern district of Tai Po. This complex comprises 2,000 apartments spread across eight blocks, housing over 4,600 residents in a city grappling with a persistent shortage of affordable housing options.

By the end of the trading day, shares of state-owned China Taiping Insurance closed down 1.92%, contrasting with a slight gain of 0.1% in the benchmark Hang Seng Index .HIS. Earlier in the day, the shares had plummeted by as much as 8.1%, reaching their lowest point since October 24.

Minutes from meetings of registered owners at Wang Fuk Court revealed that members had approved the continuation of insurance coverage with China Taiping Insurance (Hong Kong) for the housing complex, effective from December 2024. The policy period is set from January 1, 2025, to December 31, 2026, exposing the insurer to potential liabilities of up to HK$2 billion (approximately $257 million) for damages to the complex’s exterior and public areas.

Additionally, the Hong Kong unit of China Taiping Insurance provided coverage for a renovation project undertaken by Prestige Construction and Engineering Company, as indicated in a separate project-briefing document. This policy, valid for three years starting July 2024, encompasses “all risks” for the contractor, with a total compensation limit of HK$365 million, along with employee compensation coverage of up to HK$200 million per incident.

On Thursday, the government confirmed that Prestige was the registered contractor for the building complex. However, the company did not respond to multiple requests for comments from Reuters.

China Taiping Insurance Holdings, which offers a range of general insurance services from marine hull to property insurance, has yet to provide a response to inquiries from Reuters regarding the situation.

A knowledgeable source indicated that the Hong Kong unit insured all risks associated with the renovation project and provided coverage for employee compensation for contractors. Furthermore, the insurer also covered third-party liability for Wang Fuk Court’s owner corporation, as well as property and public liability insurance.

Analysts from Citigroup noted that the fire could significantly impact the underwriting results of Hong Kong’s general insurance sector. They reported that in 2023, property insurance gross premiums in Hong Kong totaled HK$15 billion (approximately $1.93 billion), according to data from the city’s insurance regulator.

The Hong Kong Insurance Authority has stated that its senior management is spearheading a task force to collaborate with relevant insurers, ensuring that the industry is adequately resourced to manage inquiries and claims arising from the incident.

Authorities reported that firefighters managed to extinguish the flames in four of the seven affected blocks, with the remaining fires brought under control more than 24 hours after the blaze ignited. Preliminary investigations suggest that the fire may have been caused by a “grossly negligent” construction firm utilizing unsafe materials, according to police reports.

($1=7.7767 Hong Kong dollars)

(Reporting by Donny Kwok, Claire Fu, Selena Li, and Ziyi Tang; editing by Sumeet Chatterjee, Lincoln Feast, and Clarence Fernandez)

Photograph: Firefighters attempt to extinguish flames engulfing a building after a fire broke out at Wang Fuk Court, a residential estate in the Tai Po district of Hong Kong’s New Territories, Wednesday, Nov. 26, 2025. (AP Photo/Chan Long Hei)

Shares of China Taiping Insurance Holdings experienced a significant decline, dropping as much as 8% on Thursday, November 27. This downturn was primarily driven by concerns regarding the company’s exposure to a devastating fire at a Hong Kong apartment complex, which tragically resulted in the deaths of at least 55 individuals, with nearly 300 still unaccounted for.

The incident occurred at Wang Fuk Court, a densely populated residential estate located in the northern district of Tai Po. This complex comprises 2,000 apartments spread across eight blocks, housing over 4,600 residents in a city grappling with a persistent shortage of affordable housing options.

By the end of the trading day, shares of state-owned China Taiping Insurance closed down 1.92%, contrasting with a slight gain of 0.1% in the benchmark Hang Seng Index .HIS. Earlier in the day, the shares had plummeted by as much as 8.1%, reaching their lowest point since October 24.

Minutes from meetings of registered owners at Wang Fuk Court revealed that members had approved the continuation of insurance coverage with China Taiping Insurance (Hong Kong) for the housing complex, effective from December 2024. The policy period is set from January 1, 2025, to December 31, 2026, exposing the insurer to potential liabilities of up to HK$2 billion (approximately $257 million) for damages to the complex’s exterior and public areas.

Additionally, the Hong Kong unit of China Taiping Insurance provided coverage for a renovation project undertaken by Prestige Construction and Engineering Company, as indicated in a separate project-briefing document. This policy, valid for three years starting July 2024, encompasses “all risks” for the contractor, with a total compensation limit of HK$365 million, along with employee compensation coverage of up to HK$200 million per incident.

On Thursday, the government confirmed that Prestige was the registered contractor for the building complex. However, the company did not respond to multiple requests for comments from Reuters.

China Taiping Insurance Holdings, which offers a range of general insurance services from marine hull to property insurance, has yet to provide a response to inquiries from Reuters regarding the situation.

A knowledgeable source indicated that the Hong Kong unit insured all risks associated with the renovation project and provided coverage for employee compensation for contractors. Furthermore, the insurer also covered third-party liability for Wang Fuk Court’s owner corporation, as well as property and public liability insurance.

Analysts from Citigroup noted that the fire could significantly impact the underwriting results of Hong Kong’s general insurance sector. They reported that in 2023, property insurance gross premiums in Hong Kong totaled HK$15 billion (approximately $1.93 billion), according to data from the city’s insurance regulator.

The Hong Kong Insurance Authority has stated that its senior management is spearheading a task force to collaborate with relevant insurers, ensuring that the industry is adequately resourced to manage inquiries and claims arising from the incident.

Authorities reported that firefighters managed to extinguish the flames in four of the seven affected blocks, with the remaining fires brought under control more than 24 hours after the blaze ignited. Preliminary investigations suggest that the fire may have been caused by a “grossly negligent” construction firm utilizing unsafe materials, according to police reports.

($1=7.7767 Hong Kong dollars)

(Reporting by Donny Kwok, Claire Fu, Selena Li, and Ziyi Tang; editing by Sumeet Chatterjee, Lincoln Feast, and Clarence Fernandez)

Photograph: Firefighters attempt to extinguish flames engulfing a building after a fire broke out at Wang Fuk Court, a residential estate in the Tai Po district of Hong Kong’s New Territories, Wednesday, Nov. 26, 2025. (AP Photo/Chan Long Hei)