APAC Reinsurers Post 4.0 Pct Revenue Growth In 2025 - AM Best
KUALA LUMPUR, Aug 24 (Bernama) -- AM Best’s composite of Asia-Pacific (APAC) reinsurance companies reversed a revenue decline from the previous year, posting a 4.0 per cent increase in net insurance service revenue in 2025, driven primarily by overseas business.
The global credit rating agency in its Best’s Market Segment Report, “Asia in Focus: Resilience Through Transformation”, said overseas business has been attractive to APAC reinsurers as it contains a greater concentration of non-proportional treaties, allowing reinsurers to benefit more from the favourable pricing environment that has persisted since the onset of the hard market.
“The broader improvement in underwriting profitability since the hard-market inflection point is generally consistent with global reinsurance trends, although the magnitude of improvement has been more moderate given the Asian composite’s higher share of proportional treaty business,” said AM Best senior director, Christie Lee in a statement.
From an underwriting perspective, the composite’s combined ratio showed a slight increase of less than one percentage point to 92.0 per cent in 2025, supported by improved rate adequacy and relatively benign catastrophe activity across Asia.
The report also highlighted that Asia’s renewal period in 2026 is buyer-friendly, with abundant capacity and falling rates enabling cedents to enhance protection and support growth, while retention levels largely remain stable. The expectation for 2027 is continued rate easing on non-loss-impacted treaties.
In addition, reinsurance capacity across Southeast Asia and India remains abundant, reflecting robust appetite and confidence in the region’s growth prospects, with earnings remaining supportive despite elevated catastrophe claims.
As reinsurance market conditions become more competitive, cedents are adopting a more-strategic approach to reinsurance purchasing, making selective refinements to their programmes and retention strategies to target greater capital efficiency and earnings stability.
The report is part of AM Best’s overall look at the global reinsurance industry ahead of the Rendez-Vous de Septembre in Monte Carlo, scheduled for Sept 6.
-- BERNAMA