Asia-Pacific insurers face a new set of potential macro-financial shocks, triggered by escalating trade tensions. The ripple effects will be wide but uneven. Insurers enter these tougher credit conditions from a position of strength, with solid capital adequacy and stable credit fundamentals. Our base case is for ratings stability in 2025. Various factors could nevertheless affect insurers. These include fluctuations in investment valuations; forex market volatility; supply-chain disruptions affecting property/casualty lines, and slower economic growth, which may dampen demand for new or renewed insurance coverage.