Kathmandu. Asia’s reinsurance companies are expanding their business to mature overseas markets to diversify and manage the underwriting cycle.
AM Best’s market segment report ‘Asia in Focus: A Two-Way Street for Reinsurance Diversification’ noted that most reinsurance companies in the Asia Reinsurance Composite reported higher net income in 2024. China’s biggest reinsurers have performed the best, the report said.
The composite’s weighted average return on equities rose to 11.3 per cent in 2024 from strong underwriting and investment earnings. “Asia Pacific reinsurers are increasingly turning to international markets as China’s economic growth slows and mature markets such as Japan and South Korea face demographic and economic challenges,” said Christie Lee, senior director at AM Best. ’
According to the report, reinsurers in Singapore and South and Southeast Asia maintained strong earnings in 2024. Which is almost constant year after year. However, it is still close to the historical highest point.
