Despite a decline in the measurements of its capital, the insurer posted a 33.5% rise in net profit in 1H25, driven by higher investment income and growth in new business value.
The insurer posted JPY1 trillion (US$6.5bn) in core operating profit for FY ended 31 March 2025, but weaker unrealised gains on securities pulled its capital base down from last year's peak.
The affirmed Excellent ratings and stable outlook also factor in the neutral impact from the company’s ultimate majority owner, Malayan Banking Berhad (Maybank group).
The reinsurer is projected to "maintain prudent underwriting discipline" amid softening reinsurance market conditions, according to the ratings agency.
Rating agency's shift reflects a market inflection point where record US$660bn in capital has restored buyer leverage and eroded the pricing power reinsurers enjoyed during the recent hard market.
