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<\/div>\nShares of China Taiping Insurance Holdings fell as much as 8% on Thursday [Nov. 27] on concerns about its coverage exposure of more than $200 million to a Hong Kong apartment complex where a huge fire killed at least 55 people, with nearly 300 missing.<\/p>\n
The tightly packed Wang Fuk Court in the Asian financial hub\u2019s northern district of Tai Po has 2,000 apartments across eight blocks that are home to more than 4,600 people in a city struggling with chronic shortages of affordable housing.<\/p>\n
Shares of state-owned China Taiping Insurance closed down 1.92%, lagging a gain of 0.1% in the benchmark Hang Seng Index .HIS<\/span>, recovering from earlier losses of as much as 8.1% that drove them to their lowest since October 24.<\/p>\n Publicly available minutes of meetings of registered owners of Wang Fuk Court showed members approved the continuation of insurance coverage for the housing complex with China Taiping Insurance (Hong Kong) in December 2024.<\/p>\n The policy period runs from January 1, 2025, to December 31, 2026, the records show, exposing the insurer to liability of up to HK$2 billion ($257 million) in compensation for damage to the complex\u2019s exterior and public area.<\/p>\n The Hong Kong unit also provided insurance coverage for the year-old renovation project to the contractor, Prestige Construction and Engineering Company, a separate publicly available project-briefing document showed.<\/p>\n The policy, valid for three years from July 2024, covers \u201call risks\u201d for the contractor with a total of HK$365 million in compensation, as well as \u201cemployees\u2019 compensation\u201d of up to HK$200 million per event.<\/p>\n On Thursday the government identified Prestige as the registered contractor for the building complex. Prestige did not answer repeated calls from Reuters to seek comment.<\/p>\n China Taiping Insurance Holdings, which provides general insurance services ranging from marine hull to property, and its Hong Kong unit did not immediately respond to Reuters requests for comment.<\/p>\n A source with knowledge of the matter said the Hong Kong unit insured all risks related to the renovation project and provided coverage for the contractors\u2019 employee compensation.<\/p>\n The insurer also covered third party liability of Wang Fuk Court\u2019s owner corporation, property insurance, and public liability insurance.<\/p>\n The fire could substantially hurt the underwriting results of Hong Kong\u2019s general insurance industry, Citigroup analysts wrote on Thursday.<\/p>\n In 2023, property insurance gross premiums amounted to HK$15 billion ($1.93 billion) in Hong Kong, they said in a research note, citing data from the city\u2019s insurance regulator.<\/p>\n In a statement, the Hong Kong Insurance Authority said its senior management was leading a task force working with relevant insurers to ensure that the industry deploys adequate resources to handle enquiries and claims.<\/p>\n Authorities said they had doused the flames in four of seven affected blocks, with those in the rest brought under control more than 24 hours after the blaze started.<\/p>\n The fire may have been caused by a \u201cgrossly negligent\u201d construction firm using unsafe materials, police said.<\/p>\n ($1=7.7767 Hong Kong dollars)<\/p>\n (Reporting by Donny Kwok, Claire Fu, Selena Li, and Ziyi Tang; editing by Sumeet Chatterjee, Lincoln Feast and Clarence Fernandez)<\/p>\n Photograph: Firefighters try to extinguish a flames engulfing a building after a fire broke out at Wang Fuk Court, a residential estate in the Tai Po district of Hong Kong\u2019s New Territories, Wednesday, Nov. 26 2025. (AP Photo\/Chan Long Hei)<\/em><\/p>\n<\/div><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n