Credit rating agency AM Best upgraded the financial strength rating of Hong Kong reinsurance company Fushang Reinsurance Company, a subsidiary of Tencent Holdings Ltd., to A (excellent) from A- (excellent).
It also upgraded its long-term issuer credit rating to “a” (outstanding) from “a-” (outstanding), with a stable outlook. AM Best attributed the revised rating to the improvement in FuSure Reinsurance Company Limited’s credit profile.
AM Best said FuSure Reinsurance Company Limited’s ratings reflect its balance sheet strength assessment as “Very Strong”, supported by adequate operating performance, neutral business profile and appropriate enterprise risk management. AM Best also highlighted that implicit and explicit support from Tencent Holdings Ltd. remains a key support factor for the rating.
AM Best explained that the upgrade was mainly due to the strengthening of Fushang Re’s capital levels, including two significant shareholder capital injections and the expectation of further capital support in the medium term. The agency also noted that FuSure has executed its business strategy in a disciplined and consistent manner since its launch in 2021.
AM Best said that Fushang Reinsurance Co., Ltd. has established a health reinsurance business in Greater China while benefiting from Tencent Holdings Co., Ltd.’s support in areas such as distribution, innovation and product development.
Although health reinsurance remains its core business, AM Best noted that the company has gradually expanded its business scope to long-term health reinsurance and commercial property reinsurance throughout the Asia-Pacific region, while becoming more diversified in terms of products, markets, channels and customers. The company expects continued double-digit growth in net written premiums over the medium term.
AM Best said that Fushang Reinsurance Co., Ltd. will receive an additional capital injection of HK$1 billion in 2025, bringing its total capital and surplus to HK$3.15 billion by the end of 2025, exceeding its original five-year capital plan. The agency added that according to Best’s capital adequacy, risk-adjusted capital remains at the highest level, supported by a conservative reinsurance approach, high-quality retrocession partners and a liquid portfolio focused primarily on fixed income and cash instruments.
AM Best also noted that FuSure Reinsurance Company Limited has reported positive operating results since its second year of operations, consistently achieving its planned financial targets. The company’s return on equity was 5.2% in 2025, and AM Best expects the company to maintain mid-single-digit returns and double-digit premium growth between 2026 and 2028, driven by steady investment income from its bond-heavy portfolio.
The agency further emphasized that Tencent Holdings Co., Ltd. will continue to provide direct financial support and broader group-level advantages to FuSure Reinsurance Company Limited, including through capital injections in 2023 and 2025. AM Best expects this support to remain an important factor in the company’s credit profile going forward.
AM Best noted that negative rating pressure could arise if FuSure Reinsurance Company Limited deviates materially from its business plan, leading to weak operating results, or if support from Tencent Holdings Ltd. diminishes. Conversely, if the company’s performance strengthens significantly relative to its peers, a positive rating move is likely.