Kuala lumpur: Global credit rating agency, AM Best has placed under review with developing implications the financial strength rating of A- (Excellent) and the long-term issuer credit rating of 'a-' (Excellent) of Malaysia's Labuan Reinsurance (L) Ltd (Labuan Re).

According to BERNAMA News Agency, the review follows MNRB Holdings Berhad (MNRB)'s May 19 announcement that it had entered into a conditional share purchase agreement to acquire an 80 per cent equity interest in Labuan Re for a total cash consideration of approximately US$100.69 million. MNRB's wholly owned subsidiary, Malaysian Reinsurance Berhad (Malaysian Re), currently owns a 20 per cent stake in Labuan Re. Upon completion of the transaction, Labuan Re will become a wholly owned subsidiary of MNRB.

The transaction is expected to be completed in the fourth quarter of 2026, subject to regulatory approval. The credit ratings will remain under review with developing implications pending completion of the transaction and AM Best's review of Labuan Re's credit rating fundamentals post-acquisition.