Asia-Pacific reinsurance revenue rises as companies expand overseas

Asia-Pacific reinsurers saw a recovery in net insurance service revenue in 2025, which increased by 4.0% according to AM Best. This growth reversed a previous year's decline and was driven largely by overseas business. Overseas markets have been attractive due to a higher concentration of non-proportional treaties, allowing reinsurers to benefit from favorable pricing conditions. Underwriting profitability remained strong with a combined ratio of 92.0% in 2025, supported by improved rate adequacy and limited catastrophe activity in the region.

In Japan, a planned 2027 merger between Mitsui Sumitomo Insurance (MSI) and Aioi Nissay Dowa Insurance (ADI) is expected to potentially reduce the total reinsurance capacity required, which may increase competition among reinsurers. AM Best anticipates that reinsurance buyers in Asia will face more favorable conditions during the 2026 renewal season due to abundant capacity and falling rates.

Separately, New China Life Insurance is facing challenges as its bancassurance margins fell 16% year on year to 22% in the first half of the year. The company is experiencing pressure from regulatory uncertainty in the bancassurance channel and weaker equity markets. While first-half profits rose 54% year on year, overall new business value declined 8% in the second quarter, leading analysts to expect potential pressure on second-half net profits due to lower investment yields.