Malaysian Re may face pressure as AM Best warns of softening market

Earnings were described as robust in the first half of fiscal 2026.

Malaysian Reinsurance faces catastrophe risks from both its local and overseas portfolios, but these risks are partly reduced through retrocession coverage with well-rated reinsurers, AM Best’s report said.

“AM Best assesses Malaysian Re’s operating performance as adequate, supported by positive operating results over the past five years,” the report said.

“The company reported a return-on-equity ratio of 13.5% in fiscal year 2025 (ended 31 March 2025), and earnings remained robust in the first half of fiscal year 2026.” it added.

Furthermore, AM Best expects the company to face "softening" reinsurance market conditions moving forward, which will require strict underwriting discipline to maintain its current performance levels.