Malaysian Re’s expansion into non-traditional segments to drive growth

The company’s operating performance was seen as “adequate”.

Malaysian Reinsurance Berhad’s (Malaysian Re) risk-adjusted capitalisation is slated to remain at the strongest level in the medium term, according to AM Best.

The reinsurer’s investment portfolio, which is largely allocated to term deposits, government bonds, and high-quality corporate bonds, reflects a conservative approach. 

Although the company faces catastrophe risk exposure from domestic and overseas portfolios, this is partly mitigated by retrocession arrangements with well-rated counterparties.  

Malaysian Re’s operating performance is assessed as adequate, with net profits significantly increasing in fiscal year 2024, ending 31 March, compared to the previous year. 

This improvement was driven by better claims experience, enhanced investment returns, and progress from its business remodelling and portfolio remediation efforts. 

The company remains the largest non-life reinsurer in Malaysia, holding a dominant share of the domestic reinsurance market. 

Malaysian Re has continued to diversify its underwriting portfolio geographically, with over half of its gross premiums in fiscal year 2024 originating from markets outside Malaysia.

Strategic expansion into non-traditional segments, aligned with its ongoing business remodelling programme, is expected to drive future growth.