SF Express obtains exclusive self-insurance license in Hong Kong—why is the logistics giant customizing “internal insurance” in Hong Kong?

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Logistics giant SF Holdings has made another move in the financial sector.

On July 8, the Hong Kong Insurance Authority announced it had granted authorization to "SF Insurance Limited," established by SF Holdings Co., Ltd. SF Holdings is headquartered in Shenzhen and is one of the world’s major logistics service providers.

This brings the total number of captive insurance companies established in Hong Kong to nine.

Captive insurance companies are typically initiated by large corporate groups, focusing on managing internal risks rather than making profits from external underwriting. Their core value lies in integrated management of internal risks, smoothing financial fluctuations and reducing overall insurance costs.

In the European and American markets, captive companies have a history of several decades and mature mechanisms, commonly adopted in multinational corporate governance structures. The captive market in Asia is still in its early stages, with significant room for growth in both the number of institutions and premium scale.

Hong Kong is actively seizing this opportunity, aiming to build itself into an Asian captive center, with the hope of driving demand for professional services such as accounting, actuarial, and legal, and attracting global reinsurance resources.

For large enterprises, setting up captive companies in Hong Kong offers practical advantages.

The Hong Kong Insurance Authority recently stated that companies can comprehensively identify, monitor, transfer, and resolve various risks faced by the group at lower administrative costs and compliance thresholds;

Additionally, captive companies can create synergistic effects with financial centers and asset management departments already established in Hong Kong, enhancing capital efficiency and operational resilience.

From an industry perspective, SF Holdings’ business chain is long and asset-heavy, covering airline fleets, transport vehicles, warehousing facilities, and a large number of personnel and goods in transit, facing multiple risks such as cargo loss, employee liability, property safety, and natural disasters. Under traditional commercial insurance models, premiums are easily affected by market cycles and industry payout fluctuations.

After establishing its captive insurance company, SF can use its own actual risk data for actuarial pricing and more effectively control risk costs during international expansion.

It is noteworthy that this is the first captive insurance company established in Hong Kong by a private mainland enterprise.

After HSBC Group and SAIC Motor established captive insurance companies in Hong Kong in 2025, the Hong Kong captive market is now seeing a new wave of expansion.

Since 2026, the Hong Kong Insurance Authority has authorized three new captive insurance companies. Besides SF Insurance, in February this year, the Authority granted authorization to CNNC Insurance Co., Ltd., owned by China National Nuclear Corporation, which officially launched on June 30.

CNNC Insurance stated it will leverage Hong Kong’s legal environment and green financial system to develop nuclear energy themed green insurance and carbon finance supporting products, serving the global transition to low-carbon energy. Also approved in the same period was HSH Captive Limited, established by The Hongkong and Shanghai Hotels, Limited, which became Hong Kong’s first captive insurance company initiated by the hotel industry.

Looking back, mainland large enterprises began setting up captive companies in Hong Kong in 2000, with CNOOC Insurance Co., Ltd. taking the lead in registration;

Since then, Sinopec Insurance, CGN Insurance, Shanghai Electric Insurance, and others have followed. From early energy and power state-owned enterprises to recent automotive manufacturing and financial groups, and now the private logistics leader SF, the spectrum of enterprises setting up captives in Hong Kong is becoming increasingly diverse.

This trend reflects a common pursuit across industries to strengthen internal risk management amid global competition.

Hong Kong Insurance Authority CEO Zhang Yunzheng pointed out that the new captive insurance companies confirm Hong Kong’s success in implementing its development strategy focused on local multinational enterprises, mainland state-owned and private enterprises. By attracting more large enterprises with different ownership structures and industry backgrounds, Hong Kong is steadily moving toward its goal of becoming a leading risk management center.

Risk Warning and DisclaimerThe market entails risks, and investments require caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, perspectives, or conclusions in this article fit their specific circumstances. Invest at your own risk. ```