AM Best Places Credit Ratings of GUNA Re Under Review With Negative Implications

HONG KONG--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of GUNA Re (Cayman Islands).

This Credit Rating (rating) action reflects erosion in GUNA Re’s capital position, which is a material deviation from the business plan provided by the company, and the uncertainty regarding the company’s capital support.

Based on the latest management account provided by GUNA Re as of 31 March 2026, sizeable capital erosion was reported related to accounting treatment issues arising from the novation process of an underwriting portfolio from existing entity, NEWGT Reinsurance Company, Ltd. (NEWGT) in Bermuda to GUNA Re, which is viewed as a NEWGT’s re-domiciled entity established in Cayman Islands in February 2026. GUNA Re has taken remedial actions to improve its capital position, including suspending new business underwriting and seeking internal approval for capital support to replenish its capital from its parent, ITOCHU Corporation, which supported initial capitalisation for GUNA Re. Although AM Best views that GUNA Re will likely receive capital support given the company’s strategic role as a captive company and new reinsurance hub for ITOCHU’s insurance business, the amount and timeliness of financial support from the parent remains uncertain at the moment.

The ratings will remain under review with negative implications pending increased visibility of the level and timeliness of financial support from the parent.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

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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