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RAM updates master criteria for insurance and takaful companies
Published on 15 Aug 2025.
RAM has updated its master criteria for assessing insurers and takaful operators, including introducing a new financial disclosure format for takaful operators. The revisions encompass updates and refinements necessitated by Malaysian Financial Reporting Standard (MFRS) 17, as well as more recent industry developments in respect of environmental, social and governance (ESG) requirements. Analytical adjustments were also introduced to improve peer comparability between conventional insurers and takaful operators, to strengthen our analysis.
Our analytical framework nonetheless has remained broadly unchanged, save for updates to definitions of financial ratios to reflect changes brought about by MFRS 17. The paper also provides more clarity on the rating approach for insurance and takaful groups, as well as additional considerations for financial guarantee insurance companies (FGICs).
The revised criteria has no rating impact on RAM’s existing portfolio and will supersede these previous publications:
- RAM’s Updates on Disclosure Formats and Financial Measures of Insurance Companies, November 2023
- Rating Methodology for Insurance & Takaful Companies (Update), September 2016
- Leverage Guidelines for Financial Guarantee Insurance Companies, January 2014
For further details, please refer to the latest publications here.
Analytical contacts
Loh Kit Yoong
(603) 2708 8285
kityoong@ram.com.my
Sophia Lee
(603) 2708 8211
sophia@ram.com.my
About RAM Rating Services Berhad (RAM Ratings)
Established in 1990, RAM Ratings is a leading credit rating agency registered under the Securities Commission’s Guidelines on Credit Rating Agencies. In addition to the provision of credit ratings for corporate bonds and sukuk and their issuers, RAM Ratings also provides research and publications on Islamic finance, fixed income and macro-economic and industry analysis as well as data analytics relating to credit risk, counterparty assessments and other related domains.
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