RAM Ratings affirms Etiqa Berhad’s AA1/Stable/P1 ratings; subordinated bonds at AA2/Stable

Published on 10 Nov 2026.

Share Tweet Email

RAM Ratings has affirmed the AA1/Stable/P1 corporate credit ratings (CCRs) of Etiqa Berhad (formerly known as Maybank Ageas Holdings Berhad)’s (Etiqa or the Group) and the AA2/Stable rating of its RM10 billion Subordinated Bonds Programme (2021/-). The CCRs are positioned one notch below the Group’s group credit strength, reflecting the structural subordination of creditors at Etiqa, a non-operating insurance holding company, to policyholders and other creditors of its operating subsidiaries.

The rating affirmations are based on the Group’s strong Malaysian insurance and takaful franchise under the Etiqa brand, diversified earnings and risk profile, and sound capitalisation. Etiqa led the domestic non-life market in 1Q 2026, with a 16% share of aggregate gross premiums and contributions. It also ranks among the top bancassurance providers in life insurance and family takaful, although its market presence remains smaller than some locally incorporated foreign life insurers.

In September 2026, Malayan Banking Berhad (Maybank, rated AAA/Stable/P1) acquired Ageas Insurance International NV’s remaining 30.95% stake in Etiqa (then Maybank Ageas) for RM4.83 bil. As Maybank’s now wholly owned core insurance and takaful subsidiary, we have assessed the likelihood of extraordinary parental support from Maybank, if needed, as ‘very high’, given Etiqa’s strategic importance to the banking group and the strengthened ownership linkage. Etiqa also benefits operationally from Maybank’s strong franchise and extensive distribution network.

Domestic new business (NB) of the Group’s life insurance and family takaful segments contracted 0.7% y-o-y in 1H 2026, improving from an 18% decline in 2025. Recovering investment-linked policy sales partly offset continued weakness in credit-related business. In Singapore, NB life premiums grew 5% y-o-y in 1H 2026, following strong growth of 33% in 2025, supported by participating and investment-linked products distributed through the bancassurance channel. 

Malaysian non-life premiums and contributions fell 10% in 1H 2026, mainly due to fewer renewals of commercial marine and fire risks. Measures to improve motor profitability lowered claims ratios, although these remained weaker than the industry average.

Despite softer domestic sales, the Group’s pre-tax profit rose 10.4% y-o-y to RM650.6 mil in 1H fiscal 2026, mainly driven by stronger investment returns. Its pre-tax return on assets averaged a healthy 2.5% over the last three years.

Full ownership gives Maybank greater flexibility to revise its bancassurance arrangements with the Group and to optimise capital across Etiqa’s subsidiaries. Bancassurance accounted for about 43% of the Group’s aggregate life, family takaful and non-life premiums and contributions in 2025. Maybank’s capital optimisation plan has resulted in Etiqa’s higher leverage while capital buffers are expected to reduce at both the holding company and operating subsidiaries as dividends are upstreamed. In September 2026, the Group increased the limit of its subordinated bond programme from RM3 bil to RM10 bil and issued RM2.1 bil.

We have not applied further notching to Etiqa’s ratings despite its company-level gearing and double leverage potentially exceeding levels that we would typically associate with a weaker capacity to meet financial obligations under our criteria for non-operating insurance holding companies. This is based on our assessment of a ‘very high’ likelihood of extraordinary support from Maybank, its position as an intermediate non-operating holding company within the Maybank Group, and its diversified dividend flows from five operating subsidiaries. Accordingly, company-level gearing and double leverage are no longer key constraints on the CCRs, although we will continue to monitor financial leverage and capital adequacy at the consolidated Group and operating subsidiary levels.

 

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.

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

Rating Rationale: Etiqa Berhad