AM Best: Asia-Pacific Insurance Stability Underpinned By Mature Markets
KUALA LUMPUR, Nov 26 (Bernama) -- AM Best’s benchmarking analysis of its rated Asia-Pacific (APAC) insurance companies shows that while mature markets continue to anchor rating strength and capital adequacy, emerging markets have maintained growth and profitability despite greater volatility, reinforcing the region’s overall structural resilience.
The findings are detailed in a new Best’s Special Report, "Asia-Pacific Benchmarking: Stability Anchored by Mature Markets", which reviews AM Best’s extensive geographical coverage of rated (re)insurance groups across both mature and emerging markets in Asia and Oceania.
According to the report, rating stability remained prevalent across the region, with 14 long-term issuer credit rating upgrades and no downgrades recorded in 2024.
AM Best senior industry analyst, David Lopes in a statement said balance sheet resilience continues to be the cornerstone of rating strength across the APAC region.
“Approximately 60 per cent of rated insurers fall within the top two strength categories — strongest or very strong — reflecting sound capitalisation and prudent asset management,” Lopes added.
From an operating performance perspective, insurers with more favourable assessments exhibit better combined ratios and lower volatility compared to insurers with less favourable assessments.
The report adds that 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.
In contrast, smaller emerging markets, although improving, continue to face constraints related to scale, diversification and regulatory consistency.
Headquartered in the United States, AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry, does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
-- BERNAMA