Newly Formed Cayman Islands’ GUNA Re Rated Excellent By AM Best

KUALA LUMPUR, March 25 (Bernama) -- AM Best has assigned a financial strength rating of A- (Excellent) and a long-term issuer credit rating of “a-” (Excellent) to the Cayman Islands’ GUNA Re, with a stable outlook.

In a statement, AM Best said the credit ratings (ratings) reflect GUNA Re’s strong balance sheet, adequate operating performance, neutral business profile, and appropriate enterprise risk management.

GUNA Re was established in February 2026 as a single-parent captive for ITOCHU Corporation (ITOCHU), with plans to novate existing businesses from NEWGT Reinsurance Company Ltd, supporting the expansion of third-party business.

GUNA Re’s balance sheet strength assessment reflects the strongest level of projected risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which is based on the company’s business plan.

Although the company’s underwriting risks stemming from anticipated business expansion are likely to remain a predominantly capital consumption factor, AM Best notes that management intends to carefully monitor and control the pace of business expansion with appropriate capital management to maintain the company’s current level of risk-adjusted capitalisation.

The assessment is further supported by GUNA Re’s projected conservative investment strategies and low dependence on retrocession.

Its operating performance is expected to achieve profitable results, with low double-digit return-on-equity and favourable combined ratios over the next five years, supported by both third-party and ITOCHU-related captive business.

Overall, GUNA Re’s core business objective as a captive insurer and its several competitive advantages, including strict governance of the group, and cautious and selective underwriting management remain the same.

-- BERNAMA