AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) for FuSure Reinsurance Company Limited (FuSure), based in Hong Kong. The outlook for both ratings is stable.
The ratings reflect FuSure’s balance sheet strength, which AM Best evaluates as very strong, along with its adequate operating performance, limited business profile, and appropriate enterprise risk management framework.
The ratings also consider both implicit and explicit support from FuSure’s ultimate parent company, Tencent Holdings Limited, in areas such as capital provision, business development, investment, risk management, and operational support.
To support its long-term reinsurance operations, FuSure completed a third round of capital injection from shareholders, raising its paid-up capital to RMB 2.68 billion (US$367 million). According to the company's business plan extending to 2028, AM Best expects FuSure’s risk-adjusted capitalization to remain at the strongest level based on Best’s Capital Adequacy Ratio (BCAR).
FuSure’s balance sheet strength is further supported by its conservative and liquid investment portfolio, largely composed of investment-grade bonds and cash equivalents. However, AM Best notes that as a start-up reinsurer, execution risk tied to its expansion plans continues to weigh on the balance sheet assessment.
FuSure also secured a long-term insurance authorization (Class A and Class D) from the Hong Kong Insurance Authority in 2025, which upgraded its status to a composite reinsurer.
FuSure has reported net profits since 2022, its second year of operation. The company delivered a 5.5% return on equity (ROE) in 2024, based on AM Best calculations, and projects mid-single-digit ROE alongside double-digit annual net premium written growth from 2025 to 2028.
The company’s current business profile includes underwriting treaties with loss-sensitive commission structures, helping to mitigate volatility. On the investment side, FuSure anticipates maintaining a mid-single-digit annual investment yield consistent with the returns from its bond-dominated portfolio.
AM Best forecasts that FuSure’s capitalization will stay at the strongest level throughout its current business plan period, supported by a prudent investment strategy and reinsurance programs backed by high-credit-quality retrocessionaires.
In addition to expanding its health and accident lines, FuSure is exploring entry into other reinsurance segments such as auto, pet, cybersecurity, and liability insurance.
What are your thoughts on this story? Please feel free to share your comments below.
