Kuala lumpur: AM Best has assigned a financial strength rating of A- (Excellent) and a long-term issuer credit rating of 'a-' (Excellent) to the Cayman Islands-based GUNA Re, with a stable outlook. The ratings reflect GUNA Re's strong balance sheet, adequate operating performance, neutral business profile, and appropriate enterprise risk management.

According to BERNAMA News Agency, GUNA Re was established in February 2026 as a single-parent captive for ITOCHU Corporation (ITOCHU). It plans to novate existing businesses from NEWGT Reinsurance Company Ltd, supporting the expansion of third-party business. GUNA Re's balance sheet strength is assessed at the strongest level of projected risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio, based on the company's business plan.

Although the company's underwriting risks from anticipated business expansion are likely to remain a capital consumption factor, AM Best notes that management intends to carefully monitor and control the pace of business expansion. This will be achieved with appropriate capital management to maintain the company's current level of risk-adjusted capitalisation. The assessment is further supported by GUNA Re's projected conservative investment strategies and low dependence on retrocession.

GUNA Re's operating performance is expected to achieve profitable results, with low double-digit return-on-equity and favourable combined ratios over the next five years, supported by both third-party and ITOCHU-related captive business. Overall, GUNA Re's core business objective as a captive insurer, along with its competitive advantages such as strict governance and cautious underwriting management, remains unchanged.