Overseas premiums are projected to account for about 50% of non-life premiums and profits in FYE26, supported by its US$3.5bn acquisition of Aspen Insurance.
The upgrade to 'AA' reflects S&P's view that Sun Life will maintain strong capital support for its Hong Kong unit as it expands through agency, broker, and digital channels.
The Indonesian reinsurer's risk-based capital ratio fell to 163% at end-2025 from 228% a year earlier, with Fitch also assigning a negative outlook following the ratings downgrade.
The upgrade reflects the insurer's strong capitalisation, resilient operating performance, conservative reinsurance, and ownership ties to the Henan provincial government.
Despite headwinds from interest rate normalisation and yen depreciation pressures, Japanese life insurers continue to demonstrate sound fundamentals and broadly stable premium levels.
