RAM Ratings affirms TNB Global Captive’s LECA rating of “aaa”

Published on 15 Dec 2025.

RAM Ratings has affirmed TNB Global Captive (L) Ltd’s (TGC or the Captive) “aaa” LECA rating, which indicates a superior capacity to meet policyholder obligations and financial commitments.

TGC is a licensed captive insurer in Labuan IBFC and wholly-owned subsidiary of Tenaga Nasional Berhad (TNB or the Group, Malaysia’s national utility company). The rating affirmation reflects favourable assessments for insurance risk management, capitalisation and liquidity, alongside the expectation of continued parental support.

TGC has been profitable since its inception in 2018, with premiums growing steadily as it expands insurance coverage of the Group’s assets. In FY24, the Captive recorded pre-tax profit of RM20.7 mil (FY23: RM21.8 mil) from a combination of insurance premium and commission income. It insures Fire and Perils, Industrial All Risks (IAR), Machinery Breakdown (MB) and Business Interruption (BI) risks through Group-wide and specific policies for TNB subsidiaries.

TGC’s approach to risk retention is measured. Its exposure to large risks arising from IAR, MB, and BI coverages is mitigated through a multi-layered retrocession programme and minimal retention amounts under the Fire and Perils policy. This has effectively limited several large claims related to machinery damage, floods, and operational failures over the 2023 – 2025 period.

TGC has also maintained robust liquidity and strong capitalisation. As at end-August 2025 cash and cash equivalents are approximately 6 times its annual retention limit, and its regulatory solvency has a comfortable surplus. TNB’s commitment to the Captive is reflected in a formal undertaking of financial support, and the Group’s resilient operating and financial performance provides financial backing.

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. TGC’s full LECA report can be obtained from the rated entity.

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

Analytical contact
Joanne Kek
(603) 3385 2520
joanne@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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RAM Ratings affirms TNB Global Captive’s LECA rating of “aaa”