AM Best has affirmed ratings for a group of reinsurance and insurance entities across multiple regions, citing stable outlooks but varied underwriting and earnings profiles.
AM Best affirmed the financial strength rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of NEWGT Reinsurance Company, Ltd. (NEWGT) in Bermuda, with a stable outlook.
The agency said NEWGT’s operating performance has been consistently positive over the past five years, although net income declined in fiscal-year 2024 as the company booked sizeable reserves tied to uncertainty in U.S. tariffs and potential underwriting losses in Thailand from the March 2024 Myanmar earthquake.
Premium income from business related to ultimate parent ITOCHU Corporation and a third party rose in fiscal-year 2024, but the additional reserving weighed on bottom-line results. AM Best expects some earnings volatility as NEWGT expands into non-marine lines with higher net retention, but said performance is still expected to remain profitable given the reinsurer’s underwriting approach and reinsurance programs.
For Mongolian National Reinsurance JSC (Mongolian Re), AM Best affirmed the FSR of B (Fair) and the Long-Term ICR of “bb+” (Fair), also with a stable outlook. The agency views operating performance as adequate, noting average annual gross premium written growth of 30% since 2018 and net profits in each year, supported by investment yields of more than 10%.
Mongolian Re has maintained a mid-single-digit return on equity (ROE) from 2018 to 2023, but ROE slipped to 2.3% in 2024 after a significant index-based livestock insurance (IBLI) claim.
Underwriting remains unprofitable due to volatile losses and a high expense ratio, and while the company expects scale to gradually reduce expenses, AM Best said investment income will continue to be the main profit driver in the near term.
AM Best affirmed the FSR of A (Excellent) and Long-Term ICR of “a” (Excellent) for African Reinsurance Corporation (ARC) in Nigeria, with a stable outlook. ARC reported a 12% ROE in 2024, which AM Best said should be viewed in the context of strong risk-adjusted capitalization and U.S. dollar reporting.
ARC’s overall results reflect strong contributions from both life and non-life operations, with non-life delivering a combined ratio (net/net) of 84.8% in 2024, down from 90.3% in 2023, following portfolio rationalization since 2020.
AM Best expects underwriting performance to remain in line with recent years, supported by strict underwriting, but cautioned that depreciation of operating currencies against the dollar is likely to continue to weigh on reported earnings.
Dubai National Insurance & Reinsurance P.S.C. (DNI) in the United Arab Emirates had its FSR of A- (Excellent) and Long-Term ICR of “a-” (Excellent) affirmed with a stable outlook.
DNI’s five-year (2018-2022) weighted average combined ratio under IFRS 4 was 85.3%, but underwriting results have recently been under pressure, with AM Best-calculated net-net combined ratios of 104.2% for full-year 2024 and 99.8% for the third quarter of 2025.
AM Best cited unprecedented rain events as a key driver of 2024 technical results and late reporting of some motor claims, along with persistent competition in the UAE market, as factors affecting 2025 performance.
Market conditions in the UAE, particularly for motor, have improved in 2025, and the agency expects DNI’s underwriting performance to recover over time as management continues to execute its strategic plan and corrective actions.
Enel Reinsurance - Compagnia di Riassicurazione S.p.A. (Enel Re) in Italy, the captive of Enel S.p.A., also had its FSR of A- (Excellent) and Long-Term ICR of “a-” (Excellent) affirmed with a stable outlook.
AM Best said Enel Re’s operating performance assessment reflects an expectation that its prospective combined ratio will stay within a through-the-cycle target range of 95% to 100%.
In 2024, Enel Re reported profit before tax of €40.3 million, driven by what AM Best described as excellent investment income. That result more than offset negative underwriting performance, with the combined ratio, as calculated by AM Best, at 104.6% for the year.
