AM Best Affirms Credit Ratings of Malayan Insurance Co., Inc.
AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of
These ratings reflect Malayan’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 impact from the company’s ultimate ownership by
Malayan’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which is expected to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR). Notwithstanding this, the company’s capital adequacy remains sensitive to catastrophe-stressed scenarios emanating from flood, typhoon and earthquake events in
AM Best views Malayan’s operating performance as adequate. The company reported a five-year average combined ratio and return-on-equity ratio of 101.4% and 4.1% (2017-2021), respectively. Overall underwriting performance has been hampered by volatility and unfavourable loss experience from its fire business in recent years, driven by catastrophe and large loss events. Nevertheless, the company continues to report good technical results for its motor business, which helps to offset the unfavourable performance of its fire business. Investment income, which composed of interest and dividend income, continues to be the principal contributor to Malayan’s overall earnings.
The business profile assessment of neutral reflects the company’s position as the largest non-life insurance company in
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
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Source: AM Best
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