January 30, 2026 Reinsurance

AM Best Affirms Credit Ratings of Etiqa General Insurance Berhad

Business Wire

SINGAPORE--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Etiqa General Insurance Berhad (EGIB) (Malaysia). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect EGIB’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). In addition, the ratings factor in the neutral impact from the company’s ultimate majority owner, Malayan Banking Berhad (Maybank group), one of the largest financial services groups incorporated, listed and domiciled in Malaysia.

EGIB’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level at year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR), and is expected to remain at that level over the medium term. AM Best views the company as having a moderate risk investment strategy, which is made up of a combination of low-risk assets of cash, deposits and bonds, as well as higher-risk assets including equities and real estate. In addition, EGIB has a high dependence on reinsurance, with a net retention ratio of 33.7% in 2024. As a result, the company’s reinsurance recoverables are a large balance sheet item and have increased its exposure to credit risk.

AM Best assesses EGIB’s operating performance as strong, supported by low average net loss experience in its core business lines of fire and personal accident, as well as favourable reinsurance commission income from ceded risks. In 2024, the company reported lower net income compared to 2023, primarily due to higher claims experience in fire and motor insurance. EGIB’s investment income continues to remain supportive of overall earnings. Although the ongoing phased liberalisation of motor and fire insurance pricing in Malaysia may constrain future underwriting margins, AM Best expects EGIB to maintain its underwriting and pricing discipline, as well as implement timely remedial action, as needed.

AM Best views EGIB’s business profile as neutral. The company is a midsized non-life insurer in Malaysia, with a market share of approximately 11%, based on 2024 gross direct premium. The company’s underwriting portfolio is diversified moderately by line of business and distribution channel, albeit with majority of business originating from Malaysia. As part of the Maybank group, EGIB benefits from good distribution capabilities with preferential access to business through its parent’s banking network. Competitive conditions in core business lines in Malaysia’s general insurance industry are expected to persist over the medium term.

AM Best views EGIB’s ERM approach as appropriate given the current size and complexity of its operations. The company’s risk management capabilities are considered appropriate relative to the profile of its key risks, although reinsurance credit/dispute risk is viewed to be elevated given EGIB’s exposure to some non-rated reinsurance counterparties.

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.