A.M. Best Affirms Ratings of Malaysian Reinsurance Berhad

SINGAPORE--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Malaysian Reinsurance Berhad (Malaysian Re) (Malaysia). The outlook for both ratings is positive.

The ratings acknowledge Malaysian Re’s favorable operating performance and strong risk- adjusted capitalization, as measured by Best's Capital Adequacy Ratio. The ratings also acknowledge the company’s sizable market share and well-established presence in its domestic market.

Malaysian Re’s operating performance has been stable and balanced with contributions from underwriting and investments. Despite the gradual reduction of regulated cession agreement (voluntary cession) rates, Malaysian Re was able to maintain its underwriting margins by expanding overseas. The company’s risk-adjusted capitalization is supported by a low underwriting leverage as well as good asset quality.

Offsetting rating factors include the downward trend of the voluntary cession agreement, which is the main contributor to the company’s premiums and underwriting profits. In addition, a difficult operating landscape could hinder profitable growth in its overseas portfolio, which could buffer any negative impact from the downward revision of the voluntary cessions level.

Positive rating actions could occur if Malaysian Re is able to sustain overall profitability ratios as the volume of voluntary cessions tapers off and its overseas business shows sustained profitability.

Negative rating actions could result from a sustained deterioration of the company’s operating performance.

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151210006296/en/

A.M. Best Company
Faith Tan, +(65) 6589 8400, ext. 212
Associate Financial Analyst
[email protected]
or
Chi-Yeung Lok, +(65) 6589 8400, ext. 211
Senior Financial Analyst
[email protected]
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company

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