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RAM Ratings assigns AA3 first-time insurer financial strength rating to Malaysian Life Reinsurance Group Berhad
Published on 18 Sep 2025.
RAM Ratings has assigned insurer financial strength ratings of AA3/Stable/P1 to Malaysian Life Reinsurance Group Berhad (Malaysian Life Re or the Reinsurer).
Malaysian Life Re, an established domestic life reinsurer, commands an estimated 25% market penetration. Formed in 1997 as part of a national initiative to strengthen the domestic life insurance ecosystem, Malaysian Life Re is a strategic joint venture between L.I.A.M. Holdings Sdn Bhd (70% stake) – a non-operating holding company owned by all 14 life insurers in Malaysia – and the Reinsurance Group of America, Inc., one of the world’s largest life reinsurers, which owns the remaining 30% stake. As the country’s only domestic life reinsurer, we believe the Reinsurer has a privileged position in the local market, enjoying strong institutional relationships. Its affiliation with RGA further allows it to leverage on RGA’s underwriting standards, actuarial expertise and product development capabilities to enhance its market position.
Gross premiums rose at a compound annual growth rate of 10% over the past five years, with growth for 2025 projected at similar rate. The Reinsurer posted a RM20 mil negative insurance service result in 2024 due to higher claims and resulting higher reserves. Its return on assets stayed respectable at 2.3%, supported by stable investment income. While the contractual service margin remains supported by steady new business growth, the 2024 closing balance was affected by one-off adverse claims-related estimate adjustments and revisions in business volume.
Malaysian Life Re’s loss ratio of 86% (RAM-calculated) remains sound. Claims experience is expected to improve as it implements more prudent pricing and shifts toward the lower-risk business segment. Debt-free, the Reinsurer has a conservative investment strategy and maintains a highly liquid position. Its robust capital adequacy ratio is significantly above both the regulatory minimum of 130% and its individual target capital level.
Analytical contacts
Sophia Lee
(603) 2708 8211
sophia@ram.com.my
Loh Kit Yoong
(603) 2708 8285
kityoong@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.
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Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
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