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APAC reinsurance net service revenue rises 4% in 2025
AM Best said the Asia-Pacific reinsurers’ 2025 combined ratio edged up to 92% as underwriting rate adequacy improved and catastrophe activity stayed relatively benign.
AM Best’s composite report on Asia-Pacific reinsurance companies shows the region reversed a 2024 revenue decline, with net insurance service revenue up 4% in 2025. The gain was driven primarily by overseas business, supported by a more favorable pricing environment tied to the hard market’s effects.
The report also found underwriting conditions held up, with the APAC composite’s combined ratio increasing slightly, by less than one percentage point to 92% in 2025. AM Best attributed the performance to improved rate adequacy and relatively benign catastrophe activity across Asia.
Looking ahead, AM Best expects Asia’s 2026 renewal period to be buyer-friendly, citing abundant capacity and falling rates that could help cedents enhance protection and support growth, while retention levels are likely to remain largely stable. For 2027, the report points to continued rate easing on non-loss-impacted treaties.
AM Best highlighted reinsurance capacity in Southeast Asia and India, describing it as abundant alongside continued support for earnings despite elevated catastrophe claims. The report also flagged the planned 2027 merger of Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance in Japan as a potential shift that could reduce the combined entity’s need for reinsurance capacity, which may intensify competition among reinsurers and brokers, according to Reinsurance News.