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RAM Ratings affirmed Hong Leong Assurance’s AAA rating
Published on 13 Nov 2025.
RAM Ratings has affirmed Hong Leong Assurance Berhad’s (HLA or the Insurer) AAA/Stable/P1 insurer financial strength (IFS) ratings and the AA1/Stable rating of its RM2 billion Subordinated Notes Programme (2020/-). The one-notch difference between HLA’s long-term IFS rating and the rating of the programme reflects the unsecured and subordinated nature of the notes.
The affirmation reflects RAM’s assessment of a “high” likelihood of extraordinary support from Hong Leong Financial Group Berhad (HLFG or the Group), a non-operating financial holding company whose credit profile is anchored by its major subsidiary, Hong Leong Bank Berhad (HLB or the Bank, rated AAA/Stable/P1). As a core component of HLFG’s insurance operations, HLA is viewed to be strategically important to the Group’s domestic franchise. In FY Jun 2025, the Insurer contributed 8% of HLFG’s pre-tax profit.
HLA held an 8.7% share of the industry’s annual premium equivalent in 1H 2025, ranking fifth among 14 players. The Insurer’s strategic focus on regular and protection-based premiums underpins sustainable income generation. Strong bancassurance sales drove new business premiums up by 12% in FY Jun 2025, with momentum expected to continue. Financial market performance remains a key driver of profitability. Despite a 7% rise in insurance revenue, profitability was moderated by lower investment returns in FY Jun 2025 following an above-average performance in the prior year, resulting in a 26% decline in pre-tax profit to RM484 mil.
As at end-June 2025, HLA’s capital adequacy ratio (CAR) remained adequate to support business growth and absorb market volatility. The Insurer’s liquid assets to net insurance contract liabilities ratio was 0.8 times, providing a healthy buffer against claims liabilities.
Analytical contacts
Lee Yee Von
(603) 2708 8217
yeevon@ram.com.my
Sophia Lee
(603) 2708 8211
sophia@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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