Zhibao Re boosts outlook with parental support and liquidity

AM Best expects short-term fluctuations because of the small initial capital.

Zhibao Labuan Reinsurance Company expects rapid expansion in its early years by tapping the distribution network and data resources of its parent, Zhibao Technology Inc., according to AM Best.

Licensed in April 2025, the reinsurer plans to source business from mainland China through Zhibao Technology’s partnerships with insurers and business platforms. 

AM Best says this approach should give Zhibao Re stronger data, especially for health and medical products, along with underwriting support from affiliated firms.

The company aims to break even in its first year. AM Best notes that the reinsurer faces the typical execution risks of a start-up, although support from its parent is expected to cushion initial pressures.

Zhibao Re’s capital position is projected to stay at a strong level at end-2025, helped by conservative investments, good liquidity and limited exposure to large losses. 

Even so, AM Best expects short-term fluctuations because of the company’s small initial capital base and rising underwriting leverage. Future capital injections from Zhibao

Technology are planned, but the timing and size remain uncertain.
The reinsurer is building out its risk management framework as it prepares for regulatory solvency and stress-test requirements in Labuan. 

AM Best says the company’s outlook will depend on how well it executes its expansion plan and maintains capital strength.