Kathmandu. Insurance companies in the Asia Pacific region are generally expected to maintain a stable performance during 2026. This will be supported by strong capital buffers and disciplined business practices.
This is the estimate of international rating agency Fitch Ratings. “Life insurers are increasingly focusing on quality growth and profitability, while non-life companies are emphasizing discipline and efficiency in underwriting, Fitch said. ’
According to Fitch, insurance companies across the region are preparing to change solvency rules through capital increase and active asset liability management. Fitch expects operating margins to remain stable despite regulatory changes, slower growth and lower investment yields. “Non-life insurers are likely to benefit from favorable reinsurance conditions, while life insurers will continue to focus on profitability and portfolio management in volatile markets,” Fitch said. ’
Fitch expects the capital levels of insurance companies to remain healthy. “However, market volatility remains a significant risk,” Fitch said.
Fitch has maintained a “deterioration” outlook for China Life and Taiwan Life. That was revised from stable in mid-2025. Chinese life insurers are facing lower premium growth due to tighter commission rules and the larger impact of equity market volatility.
Taiwanese life insurers are under pressure from new capital standards set to take effect in 2026, as well as currency fluctuations and hedging costs.
About 92 per cent of Fitch-rated insurers in the Asia Pacific region are in a near-stable outlook. This reflects the expectation that capital and income valuations will remain within the benchmark.
Fitch confirmed a stable outlook valuation for most Taiwanese life insurance companies in November 2025. Fitch removed the previous negative clock associated with the sharp rise in the Taiwan dollar and the FX mismatch. “Tight capital regulations, market volatility and extreme weather pose challenges, but strong yields and capital buffers support stability,” Fitch said in the report÷. ’
