Thailand’s Asian Re Retains Good Credit Ratings - AM Best
KUALA LUMPUR, May 21 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of B++ (Good) and the long-term issuer credit rating of “bbb” (Good) of Thailand’s Asian Reinsurance Corporation (Asian Re).
The outlook for these credit ratings (ratings) is stable. AM Best has also assigned the Thailand National Scale Rating (NSR) of aa+.TH (Superior) to Asian Re, with a stable outlook.
The ratings reflect Asian Re’s strong balance sheet strength, adequate operating performance, limited business profile and appropriate enterprise risk management, according to AM Best in a statement.
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, and is expected to remain at that level over the medium term.
However, AM Best views the company as having a relatively modest absolute capital base compared with its reinsurance peers, increasing the sensitivity of its balance sheet to shock events.
The credit rating agency also assessed Asian Re’s operating performance as adequate, supported by robust operating results in recent years, including a return-on-equity ratio of 8.3 per cent in 2025.
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 remain supported by sound underwriting profitability and robust investment returns.
Asian Re’s business profile was assessed as limited, reflecting its position as a regional non-life reinsurer with a modest gross premium base of US$29 million in 2025. The company writes treaty and facultative business across Asia, the Middle East and Africa. (US$1=RM3.96)
Despite persistent market and regulatory challenges in several operating markets, Asian Re is expected to continue implementing strategic initiatives and business partnerships aimed at expanding its underwriting portfolio and market presence over the medium term.
-- BERNAMA