The Asian Reinsurance Corp. (Asian Re) is an intergovernmental organization established in May 1979. Its primary objective is to be a leading professional reinsurer in the Asia-Pacific region.
The concept of a regional reinsurer was developed gradually starting in 1972, when the third session of the United Nations Conference on Trade and Development (Unctad) passed Resolution 42—(iii) recognizing that a reinsurance market is an essential element of economic growth. In 1974 eight members of the United Nations-Economic and Social Commission for Asia and the Pacific (Unescap) agreed in principle to establish a regional reinsurance institution. In 1976 a draft intergovernmental agreement was written and, in 1977, it was signed by seven countries. The Philippines signed the agreement creating Asian Re on September 30, 1977. In 1979 the inaugural meeting of the Council of Members was held. Today, Asian Re is headquartered in Bangkok, Thailand. The Council of Members is composed of representatives from each of the 10 regular member-states.
Upon the signing of the intergovernmental agreement in 1977, Presidential Decree (PD) 1270 was issued on December 22, 1977, establishing the National Reinsurance Corp. of the Philippines (PhilNaRe) and designated it as the national institution authorized to subscribe to the portion of the capital stock of Asian Reinsurance allotted for the Philippines. Under Section 3 of PD 1270, the insurance commissioner was designated as Philippine representative to the Council of Members of Asian Re. As of 2016, the vice chairman of the Asian Re management board is the Philippine insurance commissioner.
Asian Re started its operations on January 1, 1980, with an authorized capital of $15 million and a paid-up capital of $4.5 million contributed by nine countries. This was later increased to $5 million in 1993. In July 2005 the authorized capital was increased to $100 million. In 2012 its authorized capital increased to $200 million.
In December 2006 its paid-up capital was increased to $19.3 million. This increased to $28.4 million by December 2007; to $30.8 million by January 2009; to $78.27 million by 2014. By 2015 its paid-up capital has increased to $98.82 million.
In 2006 it had a net worth of $33.8 million; $51.6 million by December 2007; and $56.0 million by January 2009.
In November 2000 its membership was opened to developed countries and the ceiling on the capital contribution of members was removed.
Its membership is open to all state members or associate members of the Unescap. On July 9, 2005, associate membership became open to non-Unescap member-states, private organizations, private corporations, non-governmental organizations and multilateral institutions. A year later, on December 2006, it admitted six associate members; this increased to seven a year later in December 2007. In January 2009 it admitted its eighth associate member; and its 10th in 2011. By 2014 its associate membership has increased to 19.
At present (2016), there are 10 Unescap member-states as regular members. They are Afghanistan, Bangladesh, Bhutan, China, India, Iran, South Korea, Sri Lanka, Thailand and the Philippines.
There are 19 insurance and reinsurance companies from Asia as associate members. They include such companies as Bimeh Markazi Iran of Iran; General Insurance Corp. of India of India; Mitsui Sumitomo Insurance Co. Ltd. of Japan; The Viriyah Insurance Co. Ltd. of Thailand; Oman Insurance Co. PSC of the United Arab Emirates; Sadharan Bima Corp. of Bangladesh; and Bangkok Insurance Public Co. Ltd. of Thailand, among others.
In terms of financial strength rating, in March 2008, A.M. Best gave it a “B++” (Good) and “bbb” for Issuer Credit Ratings with “stable” outlook. In 2016 it was given “B+” (Good) with stable outlook rating from the previous rating of “B” (fair).