The Insurance Authority's register shows 160 authorized general insurers in Hong Kong. Target Insurance Holdings is not among them, the IA having revoked the operating subsidiary's licence after the company failed the minimum solvency test, which requires an insurer to hold assets fully covering its policyholder liabilities. The SFC filed a petition this week in the Court of First Instance under Section 214 of the Securities and Futures Ordinance, naming the former chairman and seeking an order compelling him to purchase minority shares at a court-assessed fair price. The IA's action addressed the insurance business; the SFC's petition addresses the listed equity, and the minority shareholders who could not exit at a fair price during the period the SFC considers material to the harm.

The former chairman is the named respondent. Section 214 of the SFO requires the Court to find that the holding company's affairs were conducted in a manner that unfairly prejudiced minority members before a buy-out order is available; the SFC's petition is the assertion that they were. Munich Re's 2025 NatCat report puts the 2024 global protection gap -- the share of weather-related economic losses that no insurance covered -- at fifty-six per cent, or $140 billion uninsured from $320 billion total; Munich Re's Asia-Pacific reinsurance portfolio includes catastrophe programmes written against Hong Kong's primary general insurance market, so the firm measuring the gap also sets the renewal rates the remaining authorized insurers price against. The petition will be listed for a directions hearing before a judge of the Court of First Instance; the buy-out price, if the court finds unfair prejudice, is fixed under Section 214 of the SFO at what the court considers fair value.