Malaysian Reinsurance Berhad (Malaysian Re) has retained its Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Rating of “a-” (Excellent) from AM Best, with a stable outlook for both.
The ratings reflect Malaysian Re’s strong balance sheet, supported by its risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects the company to maintain its capitalization at the strongest level over the medium term.
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The firm’s conservative investment strategy, focusing on term deposits, government bonds, and high-quality corporate bonds, also contributes to its financial resilience.
Malaysian Re mitigates catastrophe risks from its domestic and international portfolios through retrocession coverage with well-rated counterparties. Its operating performance is rated as adequate, with the company demonstrating consistent earnings stability.
For the fiscal year ending March 31, 2024, Malaysian Re’s net profits saw a significant increase, driven by improved claims experience, higher investment returns, and the success of its ongoing business remodeling and portfolio remediation efforts. Higher domestic interest rates further supported investment income, a key contributor to overall earnings.
The company remains the largest non-life reinsurer in Malaysia. Its underwriting portfolio has become increasingly diversified, with more than half of its gross premiums in fiscal year 2024 sourced from international markets.
Malaysian Re’s strategic focus on expanding into non-traditional segments under its business remodeling program is expected to support future growth.
