Asian Re achieves 76% increase in net profit in 2023 fiscal year
Asian Reinsurance Corporation (Asian Re), a regional non-life reinsurer, has reported a substantial 76% rise in net profit to USD 3.21 million for the fiscal year 2023, marking a significant milestone in its financial performance.
Underwriting and operating performance metrics are expected to improve in the intermediate term as Asian Re executes its business plan, according to AM Best.
Asian Re’s strong balance sheet strength is underscored by risk-adjusted capitalisation measured by Best’s Capital Adequacy Ratio (BCAR).
This is expected to remain at the strongest level over the medium term. The company has implemented several strategic initiatives over the years, leading to substantial portfolio growth since 2017 with a compound annual growth rate (CAGR) of 17%.
In 2023, the combined ratio improved to 100.3%, aligning with projections for the third consecutive year. Positive operating results have been sustained for the last three years, driven by management initiatives in underwriting, conservative risk selection, actuarial reserve strengthening, and risk management.
Gross accounted premium grew by 12.4% to USD 26 million in 2023, bolstered by new business, organic growth, and improved reinsurance terms and conditions.
The solvency ratio remained robust at 333% according to Thailand RBC guidelines, indicating strong liquidity and low underwriting leverage.
Additionally, Asian Re reported an investment yield of 3.4% for the year and revamped its ERM procedures and framework to enhance risk management capabilities.
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