AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of 'a-' (Excellent) of FuSure Reinsurance Company Limited (FuSure) (Hong Kong).

The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect FuSure's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect the implicit and explicit support from its ultimate parent, Tencent Holdings Limited (Tencent), including capital, business development, investment, risk management and operational support.

In March 2025, FuSure received its long-term reinsurance license authorization from the Hong Kong Insurance Authority, expanding its business scope from existing general reinsurance business, and formally became a composite reinsurer. To support the upcoming long-term reinsurance business development, FuSure received the third round of capital injection from its shareholders, which increased its paid-up capital to RMB 2.68 billion (USD 367 million). Based on the company's latest business plan toward 2028, AM Best expects its risk-adjusted capitalisation will remain at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The very strong balance sheet assessment is supported by its prudent and liquid invested asset portfolio dominated by investment-grade bonds and cash and cash equivalents, and appropriate retrocession arrangements with a high credit quality retrocessionaires panel. Nonetheless, as a start-up reinsurer, the execution risk of the business expansion plan remains to be an offsetting factor of the company's balance sheet strength.

The company has achieved net profit since 2022, in its second year of operation. While delivering 5.5% return on equity (ROE) in 2024 based on AM Best calculation, the company expects to continue delivering mid-single-digit ROE with double-digit annual net premium written growth, in its projection period (2025 to 2028). In the current business profile, the underwriting volatility is alleviated by loss sensitive commission features in the written treaties. On the investment side, FuSure forecasts a mid-single-digit annual investment yield that aligns with its current bond portfolio.

Since its establishment in 2021, FuSure has focused on developing its market presence and competitive advantage in health and accident lines in the Greater China region, while leveraging its parent group Tencent's support in business development, product innovation and distribution. Meanwhile, from the open market source, FuSure continues to diversify its underwriting book and geographic span. With the composite license obtained in 2025, the company also plans to step into long-term medical, critical illness and life business. Concentration in health lines remains, while product risk is not considered high given its short-tail and non-catastrophe exposed nature. On the other hand, as a start-up reinsurer with planned high growth, FuSure is still subject to escalating operational and business execution risk. These risks are alleviated with the company's experienced management team and strategic and operational support from Tencent.

FuSure receives rating enhancement from implicit and explicit support from its ultimate parent, Tencent, which owns 85.01% of shares of FuSure. Tencent has a sizeable balance sheet and is listed on the Hong Kong Stock Exchange, with exceptional financial flexibility and excellent credit fundamentals. The parent has demonstrated its commitment to FuSure via capital injection in 2023 and 2025 for supporting its business growth. AM Best expects FuSure will continue benefiting from the parent group from explicit capital support, and implicit support in all aspects of operations and management, as well as particularly effective use of innovation and technology that could lead to defendable competitive advantages in product design and pricing sophistication.

Positive rating actions could occur if the company demonstrates successful execution of its business plan and further strengthens its business profile and market presence. Positive rating actions could also occur if the company demonstrates sustained improvement of its balance sheet strength, driven by reduced execution risk of its business plan, while maintaining a robust level of risk-adjusted capital. Negative rating actions could occur if FuSure materially deviates from its business plan, including adverse deviation from its projections, a significant decline in risk-adjusted capitalisation and liquidity level, or the company's operating performance no longer supports its current ratings. Negative rating actions also could occur if there is a material decline in the level of support it receives from its ultimate parent, Tencent.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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