[RAM] RAM Ratings affirms Manulife Holdings' AA2/P1 ratings, outlook stable

RAM Ratings has affirmed Manulife Holdings Berhad’s (MHB or the Group) corporate credit ratings (CCRs) of AA₂/Stable/P1. The ratings mirror the credit profile of the Group’s core insurance subsidiary, Manulife Insurance Berhad (MIB), and is not adjusted for subordination given the debt-free status of MHB. The CCRs also incorporate an uplift based on RAM's assessment of likely parental support from Manulife Financial Corporation (MFC), in light of the strong ties between the two entities and MFC's Asia-focused growth strategy.

On a standalone basis, MHB’s credit profile benefits from MFC’s global branding and market positioning, alongside MIB’s healthy capitalisation and liquidity position, conservative reserving and good product persistency. MHB’s asset management business also adds a degree of earnings diversification and stability. In 2024, MIB’s new business (NB) generation increased by a stronger 24.7% (2023: 12.4%), led by robust sales from the bancassurance channel which accounted for 65% of NB. While the bulk of this was for single-premium policies, the 15-year bancassurance partnership with Alliance Bank Malaysia Berhad helps ease concern around the sustainability of growth.

The small scale of MHB’s life insurance and asset management businesses remains a key rating constraint. As at end-March 2025, both MIB and Manulife Investment Management (M) Berhad held market shares of less than 3% in their respective segments. This limited operating presence contributes to MHB’s moderate profitability. The Group’s pre-tax return on assets ranged from 0.4% and 2.5% between FY Dec 2022 and 1Q FY Dec 2025, with stronger years typically lifted by investment results which can be volatile. Insurance service results – an indicator of underwriting profits – remained limited, staying below RM100 mil in the last three years. 

In December 2024, Bank Negara Malaysia announced interim measures capping the effect of repricing on medical and health insurance/takaful (MHIT) products between 2024 and 2026. Given MHB’s relatively small medical insurance portfolio and lower-than-industry medical claims experience, the financial impact of these regulatory caps on premium adjustments is envisaged to be manageable.


Analytical contacts
Amy Lo 
(603) 2708 8289
amy@ram.com.my

Lee Yee Von 
(603) 2708 8217
yeevon@ram.com.my

Media contact
Sakinah Ariffin
(603) 2708 8212
sakinah@ram.com.my