[RAM] RAM Ratings raises outlook on MNRB and Malaysian Re to positive, affirms ratings

RAM Ratings has revised to positive the outlook on MNRB Holdings Berhad (MNRB or the Group) and its wholly owned subsidiary, Malaysian Reinsurance Berhad (Malaysian Re or the Reinsurer), while affirming the ratings of both entities (see Table 1).



The positive outlook reflects sustained improvement in Malaysian Re’s underwriting performance. The Reinsurer’s leading market share in the domestic general reinsurance sector (2024: 62%; 2019-2023: 60%-70%) and healthy capitalisation, reserve coverage and liquidity profile continue to be rating strengths. The Reinsurer is the Group’s core subsidiary and major earnings contributor.

Malaysian Re’s solid revenue and pre-tax profit growth in recent periods, supported by disciplined underwriting and proactive risk management, contributed to an improved two-year average combined ratio of 78% in FY Mar 2025 (FY Mar 2024: 89%). Greater geographic diversification has reduced reliance on domestic business and moderated the non-renewal risk of Malaysian Re’s voluntary cession arrangements, which contribute about half of domestically generated premiums. Impact from the recently escalating Middle East war is expected to be manageable as property risks covered exclude war, while marine coverage is not significant to Malaysian Re.

As a non-operating holding company, MNRB’s ratings indicate structural subordination to Malaysian Re and the expectation that the Group will keep its gearing and double leverage ratios within rating thresholds of 0.5 times and 1.4 times, respectively. As at end-December 2025, these indicators stood at 0.3 times and 1.0 time.

The Group and its key subsidiaries maintained capital adequacy ratios above the individual target capital levels and the regulatory minimum of 130% as at end-December 2025. Considering their healthy reserves coverage, these levels are supportive of the entities’ near- to medium-term growth plans.

 

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