Active Re positions Asia Pacific (APAC) as one of the most dynamic regions for reinsurance growth, underpinned by economic expansion, rapid urbanisation and an expanding middle class.
As of year-end 2024, Active Re business development manager for overseas and MENA John Kotran said, while Latin America and North America remains the company’s largest market – together representing more than 45% of its portfolio – and MENA a key pillar of diversification, APAC offers unparalleled scale and opportunities to further balance its global portfolio.
The company’s strategy is built on diversification across both geographies and business lines, ensuring resilience, stability and sustainable long-term value creation.
This disciplined approach underpins Active Re’s vision of being a trusted global partner in reinsurance solutions.
When asked which APAC markets does Active Re consider the most under-penetrated, Mr Kotran said, “We see significant opportunities in Southeast and East Asia, where we have already begun to expand our presence, particularly in Vietnam, Malaysia, South Korea, Indonesia and the Philippines. Beyond Southeast Asia, markets such as China (6.8% of the portfolio) remain strategic priorities for further development, as insurance penetration in both countries continues to trail the global average despite strong demographic and economic fundamentals.
He added that Indonesia is also on their radar, given regulatory reforms and the potential for international reinsurers to play a greater role.
“These markets are attractive not only for their size but for the opportunity to bring innovative solutions that address protection gaps,” he said.
Macroeconomic headwinds shaping reinsurance demand
Macroeconomic volatility has a dual effect, Mr Kotran said.
“On one hand, inflation increases claims costs and pressures underwriting margins. On the other, it underscores the value of risk transfer, as cedants seek partners that can provide stability,” he said.
“For reinsurers like Active Re, strong capitalisation, a prudent investment strategy and disciplined underwriting enable us to offer sustainable solutions even in uncertain environments. We view this as an opportunity to strengthen client trust,” he added.
Regulatory barriers and Nat CAT
Regulatory environments in Asia are complex and diverse, often requiring local licensing, mandatory cessions, or physical presence, Mr Kotran noted.
As such, Active Re said the company leverages its experience operating in other highly regulated markets such as MENA to navigate these frameworks.
“We engage early with regulators, maintain strict compliance and work through trusted broker and MGA partnerships. Transparency and long-term commitment are key to building sustainable access to these markets,” he said.
Nat CAT exposures are also among the most severe in the APAC region.
Mr Kotran said the company’s approach is highly selective and supported by advanced modelling, ensuring that our participation aligns with our capital strength and retrocession strategy.
“We avoid concentration in single perils or geographies, instead maintaining a diversified book that balances CAT risk with more stable lines such as Credit & Surety and Affinity. This disciplined approach reflects the same prudence we apply globally,” he said.
Integrating climate change into risk models
In conversation about how Active Re plans to integrate climate change projections into risk models for the APAC exposures, Mr Kotran described climate change as no longer being a theoretical risk, but more so an operational reality.
“We incorporate climate projections into our catastrophe models, particularly for typhoon and flood exposures, to stress-test portfolios and adjust pricing and capacity.”
“This aligns with our ESG commitments, which are further detailed in our 2024 Annual Report, where sustainability and resilience are embedded in our operating model,” he added.
Reinsurance solutions for cyber and pandemic coverage in APAC
Emerging risks require innovative responses, Mr Kotran said.
He said Active Re has already developed bespoke solutions in MENA and Latin America, which the company is now adapting for APAC.
“Cyber protection is increasingly critical as digitalisation accelerates, while pandemic risk remains top-of-mind after COVID-19. We favour collaborative approaches: working closely with cedants, brokers and MGAs to design products that are both technically sound and locally relevant,” he added.
He also mentioned that partnerships are central to Active Re’s strategy.
“In APAC, we prioritise building strong relationships with global and regional brokers, MGAs, and cedants. These partnerships provide local expertise and market access, while we contribute global capacity, technical knowledge, and innovative product structures,” he said.
“The success we have achieved in MENA through collaboration serves as a model we intend to replicate in Asia,” he reiterated.
Active Re’s 5-year APAC vision plan
In five years, APAC will be a core pillar of Active Re’s global presence, alongside Latin America and MENA, Mr Kotran said.
Our ambition is to be recognised as a reinsurer of choice – global, specialised and innovative – offering solutions that address traditional and emerging risks.
“We aim to expand our physical presence, deepen our broker and client networks and grow sustainably across multiple lines of business. Ultimately, our vision is to support the development of the APAC insurance markets while delivering long-term value to all stakeholders,” he said. A