AM BEST AFFIRMS CREDIT RATINGS OF MALAYSIAN REINSURANCE BERHAD
- news2u
- Jan 10, 2023
- 1 min read
SINGAPORE, Jan 9 (Bernama-BUSINESS WIRE) -- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Malaysian Reinsurance Berhad (Malaysian Re) (Malaysia). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Malaysian Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Malaysian 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 over the medium term. AM Best views the company’s investment portfolio to be generally conservative, whereby the majority of investments are allocated to term deposits, government bonds and good quality corporate bonds. Additionally, the company benefits from good financial flexibility as demonstrated by its recent subordinated debt issuances in 2022, and historical capital support from MNRB Holdings Berhad. However, Malaysian Re is subject to catastrophe risk exposure in its domestic and overseas portfolios. Retrocession limits were viewed to be inadequate against more severe events such as Malaysia’s December 2021 flood, although the company has put in place higher retrocession coverage subsequent to the event.
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