Asian reinsurers are expanding into casualty lines to acquire longer-term assets that align with extended liabilities, according to Christie Lee, senior director at AM Best.
Lee said major Asian reinsurers have mirrored the performance trends of their global counterparts. In 2023 and 2024, these companies posted strong operating results, with return on equity reaching 9.2% and 11.3%, respectively.
She attributed the performance to improved pricing, tighter underwriting, increased attachment points, and higher investment returns. Lee noted that Asian reinsurers typically deliver more stable results, with recent years also benefiting from overseas business underwriting and investment returns.
She observed that, based on publicly announced results for the first half and third quarter of 2025, the positive trend has continued, aided by benign catastrophe activity.
Asian reinsurers have pursued global expansion for several years, employing strategies such as mergers and acquisitions, establishing subsidiaries or branches, and sourcing business through managing general agents or brokers. Lee explained that these efforts are not solely about growth, but also about diversifying risk and improving capital efficiency.
Read more: What’s shaping APAC re/insurance?
“When they expand, they also are not just focusing on the type of businesses that they're very familiar with, like properties, but they're also expanding to specialty lines and casualty lines," Lee said.
Expanding into casualty lines, which involve longer liability durations, allows reinsurers to match these liabilities with longer-term assets. Such assets tend to provide higher investment yields, supporting better investment returns.
The synergy created by overseas expansion, noting that technical expertise gained abroad can be used to develop new products for the home market and support local reinsurance demand.
The broader Asia-Pacific re/insurance sector is also undergoing significant transformation, with digitalization and regulatory modernization reshaping the landscape. Insurers in the region are increasingly adopting online distribution, embedded insurance, and AI-powered underwriting to address evolving societal needs and drive product development in areas such as health, renewables, and cyber insurance.
Regulatory changes, including the implementation of IFRS 17 and enhanced risk-based capital regimes, are influencing how insurers measure performance and allocate capital.
Alongside these changes, natural catastrophes remain a significant concern for Asian reinsurers. Events such as typhoons and earthquakes, combined with continued urban expansion into high-risk areas, are increasing exposure across the region.
Read more: Trends in Asia’s 2025 reinsurance renewals
This has led to renewed interest in parametric insurance, catastrophe bonds, and risk-based underwriting as insurers seek to manage these risks. Regulatory bodies are also introducing new policies to drive climate action and resilience, further shaping the risk environment for the industry.
In this context, the 2025 reinsurance renewals in Asia have reflected improved pricing and terms, according to Aon. Sufficient capacity has been available across most lines and regions, and there has been increased interest in natural catastrophe protection, with some insurers purchasing additional coverage to reduce portfolio volatility.
The market environment has allowed for more flexibility in meeting insurers’ specific needs, and demand for frequency protection is expected to rise as companies seek to manage the impact of extreme weather events and other risks.
