RAM Ratings assigns initial LECA rating of “aa” to Fubon Reinsurance Labuan Co, Ltd.

Published on 20 Nov 2025.

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RAM Ratings has assigned a “aa” LECA rating to Fubon Reinsurance Labuan Co, Ltd. (FBRL or the Reinsurer), a licensed general reinsurer in Labuan IBFC. The rating indicates strong capacity to meet policyholder obligations and financial commitments. 

FBRL is a wholly-owned subsidiary of Fubon Insurance Co, Ltd. (Fubon Insurance), the non-life insurance arm of the larger Fubon Financial Holdings Co, Ltd. (the Fubon Group), one of the largest financial holding companies in Taiwan. FBRL is the sole reinsurance entity, established in 2023 to support Fubon Insurance’s regional growth ambitions. Ready parental support is expected on account of FBRL’s role and positioning, and contractual links to other Fubon Insurance entities. 

FBRL benefits from its parent’s six-decade track record and underwriting experience in Taiwan’s non-life insurance sector. It has access to customers that have dealings with the larger Fubon Group, through an inward treaty portfolio with Taiwanese and Non-Taiwanese interests in Malaysia. A growing facultative portfolio also supports premiums which grew to RM4.3 mil in 6M FY25 (18M FY24: RM2.9 mil). Domestic fire insurance accounts for over 50% of premiums and underpins FBRL’s favourable claims performance. The Reinsurer is still building up its claims reserving and only expects to break even from FY2028.

FBRL’s ratings are moderated by its limited track record. Some cedant concentration risks are also present, albeit mitigated by longstanding business relationships. The Reinsurer is adequately capitalised, with buffer to meet claims during its ramp-up phase. 

The LECA report is available on request 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.

For more information, visit https://analytics.ram.com.my/LECARating.

 

Analytical contact
Seng Jee Hong
(603) 2708 8258
jeehong@ram.com.my

 

LECA® ratings are not an opinion of a company’s specific financial obligations and terms thereof nor the legality and enforceability of the same, nor does it involve any audit by RAM Ratings. The information herein is strictly for information purposes and is not an offer, recommendation, solicitation or advice to buy or sell any investment product, securities or instruments, nor intended to be used as a recommendation to enter into, continue, suspend or terminate any contractual or financial obligation. Nothing in this publication constitutes accounting, legal, regulatory, tax, financial or other investment advice by RAM Ratings. 

RAM Ratings reserves the right to add, remove, withdraw, amend or revise, as it deems fit and without prior notice to users, any detail related to any company for whom it has produced a LECA® rating and report. Although every reasonable care has been taken to ensure the accuracy, completeness and objectivity of the information contained herein, RAM Ratings makes no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability relating to any losses or damages (direct or indirect) howsoever suffered by any person arising from any reliance on the analysis, views or information contained in this publication.

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