APAC reinsurers poised for growth on the back of sustained demand

Easing premium rates and organic demand will drive growth, said S&P.

Asia Pacific reinsurers are poised for stable credit trends, backed by their earnings and capitalization, reports S&P Global Ratings.

The ratings agency expects easing premium rates and organic demand to drive the pace of topline growth of reinsurers.

“The region continues to present an attractive growth narrative, facilitating sustained reinsurance capacity,” S&P said.

However, challenges are emerging, including rising physical risks, a slower economic outlook, and still costly retrocession cover. These may increase margin volatility.

Softer investment returns as monetary policy eases necessitate heightened underwriting discipline.

Unexpected insurance claims and capital market fluctuations could also weigh on capital strength.