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RAM Ratings assigns AA2/Stable/P1 financial strength ratings to Syarikat Takaful Malaysia Keluarga
Published on 19 Jan 2026.
RAM Ratings has assigned AA2/Stable/P1 financial strength ratings to Syarikat Takaful Malaysia Keluarga Berhad (STMKB or the Group). The ratings reflect STMKB’s entrenched position as a leading takaful operator, robust and growing earnings generation, consistent underwriting profitability and capital strength.
STMKB is among the largest takaful operators in Malaysia, capturing over 20% share in both family and general takaful new business (NB) and gross contributions in 1H 2025. Its 11.4% share of NB in the overall life and family takaful industry positions the Group as a mid-tier player. With pre-tax return on assets averaging 4% in the last three years, STMKB’s profitability is robust relative to peers. Its revenue profile is well-balanced between family takaful and general takaful, with the former contributing an average 65% to pre-tax profits over the last three years. Investment income makes up the balance of its earnings.
Both STMKB and its wholly-owned general takaful subsidiary (Syarikat Takaful Malaysia Am Berhad) possess solid capital buffers, with company-level capital adequacy ratios comfortably exceeding individual target capital levels and the regulatory minimum of 130%. As at end-September 2025, the Group’s financial leverage ratio was a healthy 12%.
STMKB’s business is however, constrained by limited product diversification, with significant reliance on single-pay credit takaful products which account for 60%-70% of NB contributions. These products are primarily distributed through six bank partners and Lembaga Pembiayaan Perumahan Sektor Awam; this exposes the Group to NB fluctuations tied to partner financing strategies and broader credit demand. The high proportion of single-pay products challenges long-term earnings sustainability and is a rating constraint. Efforts to increase regular-contribution products are ongoing but will take time to gain meaningful traction.
We maintain coverage on STMKB’s RM1 billion Tier-2 Subordinated Sukuk Wakalah Programme (2025/-), which was assigned a AA3/Stable rating in August 2025.
Analytical contacts
Loh Kit Yoong
(603) 2708 8285
kityoong@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.
RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.
Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
© Copyright 2026 by RAM Rating Services Berhad
