Best’s Special Report: Benchmarking Analysis of Rated Asia-Pacific Insurers Shows Stability Anchored by Mature Markets

SINGAPORE--(BUSINESS WIRE)--AM Best’s benchmarking analysis of its rated Asia-Pacific insurance companies found that while mature markets across the region continue to anchor rating strength and capital adequacy, emerging markets have sustained growth and profitability despite greater volatility, reinforcing the region’s structural soundness.

The new Best’s Special Report, “Asia-Pacific Benchmarking: Stability Anchored by Mature Markets,” considers AM Best’s broad geographical coverage across its rated (re)insurance groups operating in mature and emerging markets in Asia and Oceania. The report notes that rating stability remains prevalent across the region as there were 14 Long-Term Issuer Credit Rating upgrades compared with no downgrades in 2024.

“Balance sheet resilience continues to be the cornerstone of rating strength across the Asia-Pacific region,” said David Lopes, senior industry analyst, AM Best. “According to the report, approximately 60% of rated insurers fall within the top two strength categories - strongest or very strong - reflecting sound capitalisation and prudent asset management.” From an operating performance perspective, insurers with more favourable assessments exhibit better combined ratios and lower volatility compared to insurers with less favourable assessments.

Insurers operating in mature markets show higher shares of favourable business profile assessments, supported by data and product sophistication, established distribution channels and diversified operations. Smaller emerging markets, while improving, still face constraints in scale, diversification and regulatory consistency. Additionally, although AM Best considers ERM frameworks across most of its rated companies to be appropriate, few demonstrate advanced maturity: only a small share of mature-market insurers achieved an assessment of very strong, while none among emerging market participants did.

To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=360361.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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