RAM Ratings affirms Visionary Insurance’s LECA Rating

Published on 04 Aug 2025.

RAM Ratings has affirmed Visionary Insurance Company Limited’s “a” LECA rating, which indicates an adequate capacity to meet policyholder obligations and financial commitments. The Insurer’s rating has been maintained on a balanced consideration of contained risk exposure, adequate claims paying ability and liquidity position despite capital reduction plans and recent book losses.

Visionary is a licensed general (re)insurer domiciled in Labuan IBFC. It is part of Sinoasia Alliance Group Limited, a specialist insurance broker with captive management, technical pricing and underwriting experience. The Insurer mainly provides alternative risk transfer solutions through structured reinsurance programs.

Supported by business activity, Visionary’s FY24 insurance revenue and core business earnings grew to USD2.2 mil and USD0.95 mil respectively in FY24. However, pre-tax losses were reported from sizeable impairments on receivables relating to claims for a structured reinsurance portfolio under administration, in the process of commutation. Residual impairments in 1H FY25 is expected to be its last.

While underwriting risks from its core structured reinsurance portfolio are limited by 100% quota-share treaties and clauses that hold Visionary harmless from liabilities, claims experience may impact underwriting surpluses on which Visionary earns fees. The Insurer’s provision of underwriting capacity for industrial and property all risks and professional indemnity lines have manageable liability exposures at present.

Visionary plans a USD50 mil capital reduction following a review of capital needs. The balance USD50 mil capital funds is placed in an unrated offshore financial institution, which may expose it to counterparty credit risk.

For context and understanding of the analytical considerations that underpin the rating, we advise reviewing the LECA report, which can be obtained from the rated entity. LECA is an assessment service from RAM Rating Services Berhad for companies based in Labuan IBFC. LECA ratings are typically valid for up to 1 year after they are assigned. The rating could be updated or changed upon the availability of material information, or in the event of material developments or changes in circumstances.

Analytical contacts
Joanne Kek
(603) 2708 8231
joanne@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my

The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

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RAM Ratings affirms Visionary Insurance’s LECA Rating