AM Best has affirmed credit ratings for several major insurers across Asia-Pacific, highlighting the region's strong insurance sector performance.
The ratings agency's announcements covered Vietnam's Fubon Insurance, Japan's Nippon Life Insurance, and Hong Kong's Hong Leong Insurance, all maintaining their respective ratings with stable outlooks.
The affirmations come as Asia-Pacific insurers demonstrate resilient performance despite market volatility and increased regulatory requirements.
Fubon Insurance Vietnam retained its B++ (Good) Financial Strength Rating and "bbb+" (Good) Long-Term Issuer Credit Rating, reflecting its strong balance sheet and adequate operating performance. The company's risk-adjusted capitalisation remains at the strongest level, despite high dividend payouts in 2023-2024.
The company achieved a five-year average return-on-equity ratio of 7.8% and a combined ratio of 99.2% between 2019-2023.
"Portfolio remediation actions, which included the implementation of tighter underwriting guidelines and stricter risk selection supported the achievement of robust underwriting results in 2023," AM Best said.
Nippon Life Insurance Company maintained its A+ (Superior) rating, backed by a significant 52% capital increase to JPY 10.5 trillion as of March 2024. The company's premium income reached JPY 8.6 trillion with a core operating profit of JPY 764 billion.
"Despite recent challenges from the COVID-19 pandemic and financial market volatility, the company has maintained a stable return on equity over the past five fiscal years," AM Best reported.
Hong Leong Insurance (Asia) Limited's A- (Excellent) rating reflects its strong balance sheet strength and sustained operating performance. The insurer reported double-digit premium growth in fiscal year 2024, driven by recovery in domestic helper and travel insurance segments.
AM Best expects HLIA "to benefit from continued growth momentum in its top line and improved operational efficiency, which should help stabilise the expense ratio and contribute to a higher underwriting margin."
All three insurers maintain stable outlooks, reflecting their solid market positions and strong financial fundamentals. Key factors supporting these ratings include robust risk-adjusted capitalisation, prudent investment strategies, and appropriate enterprise risk management frameworks.
The affirmations reflect AM Best's trust in the region’s insurance sector stability.
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