AM Best has upgraded the Financial Strength Rating to B++ (good) from B+ (good) and the Long-Term Issuer Credit Rating to 'bbb' (good) from "bbb-" (good) of Asian Reinsurance Corporation (Asian Re) (Thailand). The outlook of these Credit Ratings (ratings) is stable.
The rating upgrade reflects Asian Re’s sustained improvement in operating performance in recent years and successful execution of business plan leading to an improved profitability evidenced by return on equity ratio of 9.4% in 2024.
Asian Re’s balance sheet strength assessment is underpinned by its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which A.M. Best expects to remain at the strongest level over the medium term, reflecting a robust solvency level.
The management has implemented a number of strategic initiatives over the years, which has enabled the portfolio to grow steadily since 2018 with a CAGR of 14%, achieving premium of $26.3m in 2024 along with underwriting profit.
Highlights of 2024 business performance as compared to 2023:
- Combined ratio for 2024 is 84.9%, which is a significant improvement of 15.3%
- Net profit has increased by 117.9% to $7.01m
- Current solvency ratio remains robust at 336% as per Thailand RBC guidelines, showing a comfortable position of liquidity and low underwriting leverage
The company has positive operating results for the last 4 years, following several initiatives taken by the management in respect of underwriting, conservative risk selection, successful diversification of the portfolio and risk management.
AM Best expects Asian Re’s operating performance to be supported by sound underwriting, profitability and robust investment returns.
The company continues to implement a number of strategic initiatives and business partnerships aimed at expanding its underwriting portfolio and market presence.