AM Best Assigns Credit Ratings to Malaysian Life Reinsurance Group Berhad
The ratings reflect Malaysian Life Re's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. In addition, the ratings factor in a neutral holding company impact from Malaysian Life Re's majority ownership by the Life Insurance Association of Malaysia (LIAM) via L.I.A.M. Holding Sdn. Bhd.
Malaysian Life Re's balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level as of 31 December 2024, as measured by Best's Capital Adequacy Ratio (BCAR). The company has adopted a conservative capital management approach that supports a prudent regulatory solvency position, and prospective risk-adjusted capitalisation is expected to be maintained at the strongest level over the medium term. AM Best views Malaysian Life Re's investment strategy as generally conservative, with investment assets allocated to cash, deposits and fixed-income securities that are mostly well-rated. Malaysian Life Re's balance sheet strength assessment also factors in a neutral holding company assessment, following AM Best's review of LIAM.
AM Best assesses Malaysian Life Re's operating performance as adequate. In recent years, the company's earnings were driven by robust investment income, arising mainly from interest income and fair value gains from its bond investments. In 2024, Malaysian Life Re recorded a negative insurance service result, predominantly driven by the loss experience of the life and health reinsurance. Despite this, the company reported positive operating earnings with a return-on-equity ratio of 2.7%. Prospectively, AM Best expects Malaysian Life Re's operating performance metrics to remain adequate, supported by an improved insurance service result.
AM Best assesses Malaysian Life Re's business profile as neutral. The company is the sole domestic life reinsurer in Malaysia, with life, health and family retakaful business comprising its reinsurance operation. The company has a well-established market position in the Malaysia life reinsurance market. Malaysian Life Re benefits from its long-standing relationships with key cedants, who are also the members of LIAM, its ultimate parent, which supports the company's competitive position in its domestic market. The company also benefits from underwriting and operational support from Reinsurance Group of America, Incorporated (RGA), its minority shareholder. In recent years, Malaysian Life Re exhibited moderate underwriting growth, partly driven by the health and group life reinsurance segments.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250820760986/en/
Contacts
Yi DingAssociate Director+65 6305 5021yi.ding@ambest.com Victoria OhorodnykDirector, Head of Analytics+65 6303 5020victoria.ohorodnyk@ambest.com Christopher SharkeyAssociate Director, Public Relations+1 908 882 2310christopher.sharkey@ambest.com Al SlavinSenior Public Relations Specialist+1 908 882 2318al.slavin@ambest.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
22 minutes ago
- Business Wire
AM Best Assigns Credit Ratings to Somerset Life Reinsurance Ltd.
BUSINESS WIRE)-- AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of 'a' (Excellent) to Somerset Life Reinsurance Ltd. (Somerset Life Re) (Bermuda). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect Somerset Life Re's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. Somerset Life Re is a startup Bermuda domiciled reinsurance company with section 953(d) U.S. taxpayer status and is a subsidiary of Somerset Reinsurance Ltd. (Somerset Re Ltd.) (Bermuda). The U.S. taxpayer status allows Somerset Life Re flexibility to reach a broader client base. Somerset Life Re is expected to rely on its parent for services as it expands its business profile. The management team has deep industry expertise and is expected to leverage its use of direct channels, brokers and strategic relationships to fuel new business. Planned growth is moderately aggressive as the company is expected to seek reinsurance opportunities for products with low to moderate risk. The company is expecting earnings strain from acquired business in the short-term; however, over the medium-term earnings are projected to contribute measurably toward overall enterprise earnings. Additionally, AM Best anticipates that the parent company will aid in maintaining the risk-adjusted capital of Somerset Life Re if needed. The ratings are afforded two notches of lift off of Somerset Re Ltd. The addition of Somerset Life Re enhances Somerset Re Group's ability to offer reinsurance solutions to offshore insurance entities that desire to transact with a U.S. taxpayer. Furthermore, Somerset Life Re's operating capabilities are fully integrated and co-sourced with its parent company for external functions. The stable outlooks reflect AM Best's expectation that Somerset Life Re will grow risk-based capital to support its growth-oriented business plan, as it builds operational synergies through the sharing of services with its parent, Somerset Re Ltd. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Yahoo
an hour ago
- Yahoo
Why Taiwan Semiconductor Stock Tumbled Today
Key Points The U.S. government wants to take a 10% stake in Intel. It also wants to convert the free grant money that it already promised Intel into payment for Intel shares. The government may do the same thing to TSMC. 10 stocks we like better than Taiwan Semiconductor Manufacturing › Contract semiconductor manufacturer Taiwan Semiconductor Manufacturing (NYSE: TSM) stock slid 2.2% through 12:22 p.m. ET Wednesday. Why? As you may have heard by now, President Trump is planning to take an equity stake in Intel (NASDAQ: INTC). All the cool kids are doing it Following passage of the Biden administration's CHIPS Act supporting the U.S. semiconductor industry, Intel was awarded $10.9 billion in grants. But as Bloomberg reports, the Trump White House is now negotiating with Intel to convert those grants into a 10% stake in Intel stock. But Intel wasn't alone in winning CHIPS Act grants. As CNBC points out, Taiwan Semiconductor (TSMC) was awarded $6.6 billion in U.S. government semiconductor subsidies. And now it seems U.S. Commerce Secretary Howard Lutnick may want to convert that grant into an equity stake as well. What does this mean for Taiwan Semiconductor Manufacturing stock? That's the question investors are pondering today: What does this mean for TSMC? If Commerce converts its $6.6 billion grant into a $6.6 billion investment in TSMC stock, it will effectively remove $6.6 billion in "free money" from TSMC's balance sheet. But TSMC would still get to keep the $6.6 billion -- in exchange for handing shares over to the government. It might also be better positioned to win further government subsidies. But what if the rumors prove false? What if the government invests only in Intel, and not in TSMC? That would seem to give the government a big incentive to make sure Intel "wins" the semiconductor market, perhaps at TSMC's expense. This is bad news for TSMC. Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now? Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $654,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,076,588!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 18, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. Why Taiwan Semiconductor Stock Tumbled Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
AM Best Affirms Credit Ratings of Saudi Arabian Insurance Company B.S.C. (c)
LONDON, August 20, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of "bbb-" (Good) of Saudi Arabian Insurance Company B.S.C. (c) (Damana) (Bahrain). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Damana's balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management. The ratings also factor in the neutral impact from Damana's ultimate parent, Mawarid Holding Company. Damana's balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which was at the very strong level as at year-end 2023, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best expects BCAR scores to have recovered substantially to the strongest level in 2024, and year-to-date 2025, following the disposal of a large equity holding. Damana's investment portfolio is now largely conservative and consists mostly of cash and deposits. An offsetting factor to the assessment is the company's reliance on reinsurance for high-value risks, which is a common trait in the region; however, credit risk is minimised by a panel of sound credit quality. Damana's operating performance is assessed as marginal. The company has struggled with negative underwriting results for several years due to high expenses arising from its operating model and substantially reduced business scale. Loss ratios have also been affected by material events, such as the COVID-19 pandemic and the 2024 Dubai floods. Year-on-year improvements in the expense ratio have led to reductions in combined ratios from their peak of 148% in 2021, though underwriting operations remain unprofitable. Over the medium term and as the business continues to grow into its expense base, underwriting results are expected to trend towards profitability. Investment returns supplement performance, with Damana generating solid returns from its conservatively invested portfolio. Damana has seen business volumes steadily increase year-on-year since it suffered a reduction of revenues in 2021, following regulatory restrictions imposed by the Central Bank of Bahrain on the company's operations within that country. AM Best expects this trend in revenue growth to continue into the next few years, supported by Damana's renewed focus on new lines of business beyond its core lines of motor and medical. This strategy does expose Damana to execution risk given the challenging and competitive conditions in its core markets of Bahrain, the United Arab Emirates, Oman and Kuwait. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Patrick McCrystalFinancial Analyst+44 20 3808 Ben Diaz-CleggAssociate Director, Analytics+44 20 7397 Christopher SharkeyAssociate Director, Public Relations+1 908 882 Al SlavinSenior Public Relations Specialist+1 908 882 Sign in to access your portfolio
