Credit rating agency AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to GUNA Re (Cayman Islands), with the outlook for these ratings as stable.
The ratings are underpinned by AM Best’s evaluation of GUNA Re’s robust balance sheet, adequate operational performance, neutral business profile, and suitable enterprise risk management framework.
Founded in February 2026 in the Cayman Islands, GUNA Re operates as a single-parent captive insurer for ITOCHU Corporation.
AM Best notes that the company plans to transfer all existing business from NEWGT Reinsurance Company, Ltd., ITOCHU’s Bermuda-based captive, in order to support the growth of third-party business. ITOCHU is recognised as one of Japan’s leading general trading companies.
According to AM Best, GUNA Re’s balance sheet strength reflects the highest projected level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), based on the company’s business plan.
While underwriting risks associated with the planned business expansion are expected to remain a key capital-consuming factor, AM Best reports that management intends to carefully manage growth and preserve the company’s current risk-adjusted capitalisation levels. The assessment is further reinforced by conservative investment approaches and a limited dependence on retrocession, as highlighted by AM Best.
According to AM Best, the company’s operating performance is considered adequate, with projections indicating profitable results. The business plan forecasts low double-digit return on equity (ROE) and favourable combined ratios over the next five years.
Moderate growth in gross written premium and underwriting profits is anticipated, with third-party business expansion providing the main driver, while ITOCHU-related captive business continues to provide a steady contribution.
While the expansion into third-party business may slightly reduce underwriting control compared with group-related captive operations, AM Best highlights that growth will primarily come through ITOCHU’s global network and affiliated channels, helping to mitigate potential risks. Core business objectives as a captive insurer, rigorous group governance, and selective underwriting management remain unchanged.
AM Best indicates that negative rating actions could occur if third-party expansion materially weakens the business profile, increases competitive pressures, or reduces underwriting control. Other potential triggers include a significant decline in risk-adjusted capitalisation, excessive dividend distributions, or deterioration in ITOCHU’s credit profile.
Conversely, AM Best suggests that positive rating actions, while unlikely in the near term, could arise if GUNA Re demonstrates sustained improvements in underwriting performance and profitability while maintaining robust risk-adjusted capitalisation.
Throughout this assessment, the ratings and outlook are firmly grounded in AM Best’s evaluation of GUNA Re’s financial strength, operational performance, and risk management.
