AM Best Affirms Credit Ratings and Assigns National Scale Rating to Asian Reinsurance Corporation

SINGAPORE--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Asian Reinsurance Corporation (Asian Re) (Thailand). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has assigned the Thailand National Scale Rating (NSR) of aa+.TH (Superior) to Asian Re. The outlook assigned to the NSR is stable.

The ratings reflect Asian Re’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

Asian Re’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which was at the very strong level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR), and is expected to remain at that level over the medium term. AM Best views the company as having a relatively modest absolute capital base compared with its reinsurance peers, which increases the sensitivity of its balance sheet to shock events. A significant offsetting balance sheet strength factor remains Asian Re’s high-risk investment strategy, which includes the holding of a sizable balance of cash and deposits in a sanctioned country, as this investment strategy exposes Asian Re to heightened credit and liquidity risks.

AM Best assesses Asian Re’s operating performance as adequate. The company has reported robust operating performance in recent years, evidenced by a return-on-equity ratio of 8.3% in 2025 (2024: 9.4%). The company recorded a combined ratio of 92.6% in 2025, compared to 85.3% in 2024; the year-on-year increase was primarily driven by several catastrophic events. The company’s investment returns, arising mainly from interest income, have consistently supported operating earnings. Prospectively, AM Best expects Asian Re’s operating performance to be supported by sound underwriting profitability and robust investment returns.

AM Best views Asian Re’s business profile as limited, reflecting its position as a regional non-life reinsurer, with a modest-sized gross premium base of USD 29 million in 2025. The company writes treaty and facultative business in Asia, the Middle East and Africa. The company continues to grow its book of business, with a focus on improved diversification by geography and line of business. Despite persistent market and regulatory challenges in some of the markets where it operates, Asian Re is expected to continue to implement several strategic initiatives and business partnerships that are aimed at expanding its underwriting portfolio and market presence over the medium term.

AM Best considers Asian Re’s ERM approach to be appropriate relative to the current size and complexity of its operations. The company continues to develop its risk management framework and has demonstrated improvements in its risk management capabilities over recent years.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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