Bangkok: 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 is stable. AM Best has also assigned the Thailand National Scale Rating (NSR) of aa+.TH (Superior) to Asian Re, with a stable outlook.

According to BERNAMA News Agency, the ratings reflect Asian Re's strong balance sheet strength, adequate operating performance, limited business profile, and appropriate enterprise risk management. Asian Re's balance sheet strength assessment is supported by its risk-adjusted capitalisation, which was at a very strong level at year-end 2025, as measured by Best's Capital Adequacy Ratio, and is expected to remain stable over the medium term.

However, AM Best perceives the company as having a relatively modest absolute capital base compared to its reinsurance peers, which increases the sensitivity of its balance sheet to shock events. The credit rating agency also evaluated Asian Re's operating performance as adequate, buoyed 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, primarily driven by interest income, have consistently bolstered operating earnings. Looking forward, AM Best anticipates Asian Re's operating performance to remain supported by sound underwriting profitability and substantial investment returns.

Asian Re's business profile was assessed as limited, reflecting its role as a regional non-life reinsurer with a modest gross premium base of US$29 million in 2025. The company engages in treaty and facultative business across Asia, the Middle East, and Africa. Despite ongoing market and regulatory challenges in several operational markets, Asian Re is expected to continue executing strategic initiatives and forming business partnerships aimed at expanding its underwriting portfolio and market presence over the medium term.