FuSure Reinsurance Company Limited (Hong Kong) is expanding its underwriting portfolio and geographic reach as it continues to build out its reinsurance operations.
AM Best made the comments on Monday, while affirming the company’s Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent). The outlook for these ratings is stable.
The Hong Kong-based reinsurer has achieved net profit since 2022, delivering a 5.5% return on equity (ROE) last year, according to calculations by the credit ratings agency. It now expects FuSure to continue delivering mid-single-digit ROE with double-digit annual net premium written growth during its projection period (2025 to 2028).
In March, FuSure received authorisation from the SAR’s Insurance Authority (IA) to offer long-term insurance products. This approval enables the reinsurer to provide Class A and Class D offerings, expanding its portfolio to include life, annuity, and permanent health insurance. Additionally, FuSure has transitioned its General Insurance operations to a Composite Licence.
Upon receiving the Composite Licence, the reinsurer described the development as a “significant milestone” in its strategic growth and said it plans to gradually broaden its product lines and pursue opportunities in international markets.
FuSure has recently secured additional capital from its shareholders, increasing its paid-up capital to 2.68 billion yuan (US$367 million). Following this capital infusion, AM Best anticipates that the company’s risk-adjusted capitalisation will remain at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).
AM Best warned, however, that FuSure, as a startup reinsurer, stands to face escalating operational and business execution risks, but said the firm’s experienced management team and support from its parent ease risks.
FuSure, founded in 2021, focuses on developing its market presence and competitive advantages in health and accident lines in the Greater China region. It has leveraged its parent, Tencent, which owns 85% of shares in FuSure, for business development, product innovation, and distribution.
