Kuala lumpur: AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of 'a-' (Excellent) of Malaysian Reinsurance Berhad (Malaysian Re), with a stable outlook for these credit ratings.

According to BERNAMA News Agency, the ratings reflect Malaysian Re's balance sheet strength, assessed as very strong by AM Best, alongside its adequate operating performance, neutral business profile, and appropriate enterprise risk management. The company's balance sheet strength is supported by its risk-adjusted capitalisation, expected to remain at the strongest level over the medium term as measured by Best's Capital Adequacy Ratio.

Malaysian Re demonstrates good financial flexibility, evidenced by its historical subordinated debt issuances. Its investment portfolio is considered generally conservative, with most investments allocated to term deposits, government bonds, and high-quality corporate bonds. Despite being subject to catastrophe risk exposures from both domestic and overseas portfolios, this risk is partially mitigated through retrocession coverage with well-rated counterparties, as stated by the global credit rating agency.

AM Best assesses Malaysian Re's operating performance as adequate, with positive operating results over the past five years. The company reported a return-on-equity ratio of 13.5 percent in fiscal year 2025, ending March 31, 2025, and maintained robust earnings in the first half of fiscal year 2026. The underwriting performance has improved due to an ongoing business remodelling programme, portfolio remediation measures, and benign catastrophe losses.

As the largest non-life reinsurer in Malaysia, with a dominant share of the domestic reinsurance market, Malaysian Re benefits from a mandatory domestic reinsurance cession arrangement, providing access to a steady stream of domestic reinsurance business.