Credit rating agency AM Best has assigned GUNA Re (Cayman Islands) an A- (Excellent) financial strength rating and an ‘a-‘ (Excellent) long-term issuer credit rating, with a stable outlook on these ratings.
The rating is based on AM Best’s assessment of GUNA Re’s strong balance sheet, adequate operating performance, neutral business profile and appropriate enterprise risk management framework.
GUNA Re was established in the Cayman Islands in February 2026 as a single life insurance company of ITOCHU Corporation.
AM Best noted that the company plans to transfer all existing operations from NEWGT Reinsurance Company, Ltd., Itochu Corporation’s Bermuda captive insurance company, to support the growth of its third-party business. ITOCHU Corporation is recognized as one of Japan’s leading comprehensive trading companies.
AM Best said GUNA Re’s balance sheet strength reflects the highest projected level of risk-adjusted capital, as measured by the Best Capital Adequacy Ratio (BCAR) in line with the company’s business plan.
While underwriting risks associated with planned business expansion are expected to remain a key capital drain, AM Best reported that management intends to manage growth prudently and maintain the company’s current risk-adjusted capital levels. As highlighted by AM Best, this assessment is further reinforced by a conservative investment approach and limited reliance on retrocession.
AM Best said the company’s operating results were considered adequate and forecasts pointed to profitable results. The business plan predicts double-digit return on equity (ROE) over the next five years and a healthy combined ratio.
Total premiums and underwriting profits are expected to grow moderately, with third-party business expansion being the main driver, while ITOCHU-related captive insurance businesses will continue to provide stable contributions.
While expansion into third-party business may slightly reduce underwriting controls compared to group-related captive business, AM Best stressed that growth will be achieved primarily through ITOCHU’s global network and affiliated channels, helping to reduce potential risks. The core business objectives of the captive insurance company, strict group governance and selective underwriting management remain unchanged.
AM Best said negative rating action could occur if third-party expansion materially weakens business profiles, increases competitive pressures or reduces underwriting controls. Other potential triggers include a significant decline in risk-adjusted capital, excessive dividend distributions or a deterioration in Itochu’s credit profile.
Conversely, AM Best said that while positive rating action is unlikely in the near term, it could be possible if GUNA Re shows sustained improvement in underwriting performance and profitability while maintaining strong risk-adjusted capitalization.
Throughout the evaluation process, the ratings and outlook are based on AM Best’s assessment of GUNA Re’s financial strength, operating performance and risk management.
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