Active Re is focusing on selective expansion in Asia, emphasizing underwriting discipline amid prevailing market pressures, according to CEO Ramón Martínez-Carrera.
Martínez-Carrera highlighted that while competition for reinsurance business is becoming more intense due to abundant capital, the reinsurer is prioritizing technical depth over simply increasing volume. He noted that the softening of pricing and terms heightens the importance of risk selection in the growing region.
“Capital is abundant and competition for good business is intense. Pricing and terms are softening in several lines, and that makes risk selection more important, not less,” he told SIRC Today.
In 2025, the Asia-Pacific region accounted for 24.9% of Active Re’s gross written premiums, making it a key component of the company’s portfolio. However, Martínez-Carrera noted that regulatory frameworks and client needs vary considerably across this diverse market, which requires tailored underwriting strategies.
Active Re has opted to engage in markets with lower catastrophe exposure. Following a significant drop in rates for certain property segments last year, the company made the strategic decision not to renew some contracts rather than reduce pricing.
“Technical profitability comes first,” Martínez-Carrera said, stressing the importance of maintaining a diversified portfolio, a robust balance sheet, and long-term client relationships.
Market Dynamics and Underwriting Discipline
As reinsurance capacity becomes more accessible, client demands are evolving. “Cedants still need capacity, but capacity on its own no longer sets a reinsurer apart,” he stated. Clients are now looking for a partner that can understand their risk portfolios, respond swiftly, and provide consistent support through market fluctuations.
Active Re is witnessing increased interest in combining traditional reinsurance with alternative risk transfer solutions, particularly in areas experiencing rapid economic development. Martínez-Carrera pointed to infrastructure, construction, and health protection as sectors where insurance coverage is lagging behind new exposures.
In 2025, the Asia-Pacific region also comprised 44.8% of Active Re’s revenue from credit and surety, reflecting the growing opportunities in these markets. The reinsurer is considering selective engagements in markets with secondary perils and is working toward securing recognition as a foreign reinsurer in jurisdictions with strong regulatory oversight.
Martínez-Carrera emphasized the importance of good underwriting practices over simply pursuing growth. He explained that every opportunity is assessed based on comprehensive data, including loss history and risk-adjusted returns.
The company targeted an 88.4% combined ratio and a 16.1% return on equity in its 2025 results, demonstrating the effectiveness of its disciplined approach. “We gave up some volume, and the portfolio is stronger for it,” Martínez-Carrera remarked.
Looking ahead, he expects growth opportunities from expanding insurance markets and specialized client needs, coupled with the challenge of maintaining underwriting discipline as competition intensifies.
“Business written today on inadequate terms will show up later in results and in solvency,” he cautioned, adding that successful companies in 2027 will be those that balance financial strength with technical expertise and the willingness to refuse business that does not adequately reflect the associated risks.
As Active Re approaches its 20th anniversary in 2027, Martínez-Carrera underscored a lasting principle: consistent performance throughout various market cycles is more valuable than annual growth alone.
