Asia’s reinsurers expand into mature global markets

AM Best’s Asia Reinsurance Composite posted higher net income in 2024.

Asia’s reinsurers are expanding into mature overseas markets to diversify and manage underwriting cycles more effectively, according to a new AM Best report.

The Best’s Market Segment Report, Asia in Focus: A Two-Way Street for Reinsurance Diversification, highlights that most reinsurers in AM Best’s Asia Reinsurance Composite posted higher net income in 2024, with China’s players showing the strongest gains. 

The composite’s weighted average return on equity rose to 11.3% in 2024, driven by stronger underwriting and investment income.

Christie Lee, senior director at AM Best, said Asia-Pacific reinsurers are increasingly turning to international markets as China’s economic momentum slows and mature markets like Japan and South Korea face demographic and economic challenges.

The report also noted that reinsurers in Singapore and South/Southeast Asia maintained strong earnings in 2024, broadly flat year-on-year but still near historic highs. 

Capacity rebuilds amidst pricing adequacy led to increased competition, whilst April renewals in Japan saw reduced revenue from higher retentions and rate cuts, which could contribute to softer conditions in the 2026 January renewals.