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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Best’s Market Segment Report: A Two-Way Street for Reinsurance Diversification in Asia

Asia’s reinsurers are actively expanding to mature overseas markets as part of a move to diversity and be more agile with underwriting cycle management, according to a new report from AM Best.

The Best’s Market Segment Report, “Asia in Focus: A Two-Way Street for Reinsurance Diversification,” is part of AM Best’s overall look at the global reinsurance industry ahead of the Rendez-Vous de Septembre in Monte Carlo. Other reinsurance-related reports, including AM Best’s ranking of top global reinsurance groups and in-depth looks at the insurance-linked securities, Lloyd’s, life/annuity, health and regional reinsurance markets, will be available during August and September.

AM Best views the move to diversity as credit positive. The report also notes that the majority of reinsurers within AM Best’s Asia Reinsurance Composite posted higher levels of net income in 2024, with China’s reinsurers experiencing the most notable gains. Over the past decade, the major European reinsurers have identified the Asia-Pacific region as a key source for diversification and growth.

“Asia-Pacific reinsurers are following a similar strategy, significantly expanding abroad,” said Christie Lee, senior director, AM Best. “With economic momentum slowing in China, and mature markets like Japan and South Korea facing demographic and economic headwinds, North Asian major reinsurers have increasingly turned to international markets to sustain growth and diversify risk.”

Among some of the report’s other highlights:

  • The composite’s weighted average return on equity ratio improved to 11.3% for 2024, supported by stronger underwriting results and higher investment income, thus extending the improving trend from 2023.
  • Reinsurers based in Singapore and throughout South/Southeast Asia reported strong earnings for 2024 that were broadly flat year-on-year, but still near historic highs.
  • Reinsurance capacity rebuilds occurred amid pricing adequacy, leading to increased competition and treaty oversubscription.
  • In Japan, April renewal revenue was reduced owing to increased retention and rate reductions; this may further fuel Asia-Pacific 2026 January renewal softening.

To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=356983.

For global reinsurance reports ahead of Rendez-Vous de Septembre, as well as video coverage of the event, please visit AM Best’s Reinsurance Information center.

Lastly, AM Best will host its annual reinsurance market briefing at Rendez-Vous de Septembre on 7 September 2025, at 10:15 a.m. (CEST) in Monte Carlo. For more information, please visit http://www3.ambest.com/rd/rd.aspx?rd=RVDS2025.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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