AM Best has assigned a Financial Strength Rating of B+ (Good) and a Long-Term Issuer Credit Rating of “bbb-” (Good) to Zhibao Labuan Reinsurance Company Limited (Zhibao Re) (Malaysia). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Zhibao Re’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

Licensed in April 2025, Zhibao Re is a general professional reinsurer domiciled in Labuan, Malaysia. Zhibao Re is wholly owned by its ultimate parent, Zhibao Technology Inc. [NASDAQ: ZBAO], a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities in China. In its startup phase, Zhibao Re expects to build its market presence by leveraging Zhibao Technology and its affiliates’ extensive partnerships with direct insurers and business platforms across various industries in mainland China to source quality insurance risks. AM Best views that the company can benefit from improved data quality, in particular for health and medical products, as well as the expertise of its affiliated insurance broker and managing general underwriter.

Zhibao Re’s risk-adjusted capitalisation is projected to be at the strong level as of year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by its prudent investment strategy and good liquidity, as well as limited exposure to large and/or catastrophic risks. Notwithstanding, according to the company’s business plan, its BCAR is projected to exhibit fluctuation over the short to intermediate term, attributed to the limited size of the initial paid-in capital and fast rising net underwriting leverage. While a letter of guarantee is provided by its parent, AM Best also expects Zhibao Re to receive substantial capital injections from Zhibao Technology, over the next few years. While the company expects to receive capital injections from its parent, the uncertainty in the timing and amounts remain an offsetting factor to the balance strength assessment.

During the initial stage of its operation, Zhibao Re plans to source profitable business leveraging its ultimate parent Zhibao Technology and affiliate companies’ business resources and experience. The company aims to breakeven in its first year of operation and maintain a positive bottom line in the future. As a start-up company, its operating performance is exposed to elevated operational and execution risks, whilst such risks are partially offset with the operational and underwriting support of Zhibao Technology, and affiliated companies.

Zhibao Re has its risk appetite and various risk policies in place, as it follows Labuan insurance regulator’s guidance to prepare for solvency reporting and stress tests. As Zhibao Re expands its business volume and risk exposure, AM Best expects that the company will build its ERM framework in accordance with its implementation plan.

Positive rating actions could occur if Zhibao Re can demonstrate successful execution of its business plan and further strengthen its balance sheet strength. Negative rating actions could occur if the company materially deviates from its business plan leading to a significant weakening in its balance sheet strength, which will no longer support the current assessment or sustained deterioration in the operating performance, such that it no longer supports the current rating level. Negative rating actions also could occur if there are substantial adverse developments in Zhibao Technology’s financial conditions and/or capital plan, which have a material negative impact on Zhibao Re’s future capital plans and credit fundamentals.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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