AM Best assigns a Financial Strength Rating of 'A-' (Excellent) and a Long-Term Issuer Credit Rating of 'a-' (Excellent) to GUNA Re (Cayman Islands). The outlook assigned to these credit ratings is 'stable'. The ratings reflect GUNA Re’s balance sheet strength, which the agency assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. GUNA Re was established in February 2026 in the Cayman Islands as a new single-parent captive for ITOCHU Corporation. All existing businesses are planned to be novated from NEWGT Reinsurance Company, Ltd., which is the group's existing captive insurer in Bermuda. The agency notes the re-domiciliation is being undertaken to support the expansion of third-party business. ITOCHU is one of the largest general trading companies in Japan. GUNA Re’s balance sheet strength assessment reflects the strongest level of projected risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). Although underwriting risks stemming from anticipated business expansion are likely to remain a predominantly capital consumption factor, AM Best says management intends to carefully monitor and control the pace of business expansion with appropriate capital management to maintain the current level of risk-adjusted capitalisation. The assessment is further supported by the captive's projected conservative investment strategies and low dependence on retrocession. GUNA Re’s adequate operating performance assessment reflects the expectation that it will achieve overall profitable results based on its business plan, which projects low double-digit return-on-equity and favourable combined ratios for the next five years. The company anticipates moderate growth in gross written premium and underwriting profits over the period. While operating performance will be mainly supported by the expansion of third-party business, the ITOCHU-related captive business will remain a steady contributor. AM Best highlights that negative rating actions could occur if aggressive expansion into third-party business leads to a deterioration in the captive's business profile, or if there is a material decline in its risk-adjusted capitalisation. Additionally, negative actions could occur if there is significant deterioration in ITOCHU’s credit profile. Conversely, positive rating actions could occur if GUNA Re demonstrates sustainable improvement in its underwriting and operating profitability while maintaining a robust level of risk-adjusted capitalisation.
