Société Tunisienne de Réassurance (Tunis Re) has a track record of adequate operating performance, illustrated by its five-year (2021-2025) weighted average return-on-equity ratio of 9.3%, says AM Best.
The company’s earnings are derived largely from solid investment income, with a five-year weighted average net investment return (including unrealised gains/losses) of 7.7%.
Tunis Re’s underwriting performance is sound, underpinned by its non-life portfolio that generated a five-year weighted average combined ratio of 93.5% (as calculated by AM Best), which was boosted by a particularly good result in 2025 and a combined ratio of 82.5%. A partially offsetting rating factor is the potential volatility that foreign exchange gains and losses can introduce to Tunis Re’s operating performance, as has been the case in recent years.
Ratings affirmed
AM Best has affirmed Tunis Re’s Financial Strength Rating of ‘B ‘(Fair) and Long-Term Issuer Credit Rating of ‘bb’ (Fair). The outlook of these credit ratings is ‘Stable’.
The ratings reflect Tunis Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
Tunis Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level, supported by a TND120m ($40.6m) capital injection in 2026. The assessment factors in Tunis Re’s conservative investment portfolio by asset class and its concentration in Tunisia, where the company holds over 95% of its invested assets in line with regulatory requirements, which weighs on asset quality.
Business profile
Tunis Re’s business profile assessment reflects its leading position in Tunisia and good regional diversification, with approximately 60% of GWP generated outside Tunisia.