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AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of a- of Malaysian Reinsurance Berhad (Malaysian Re) (Malaysia). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Malaysian Re s balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The company s balance sheet strength is underpinned by its risk-adjusted capitalisation that is expected to remain at the strongest level over the medium term, as measured by Best s Capital Adequacy Ratio (BCAR). Capital adequacy has been supported by Malaysian Re s moderate underwriting leverage and a good quality retrocession panel, as well as from robust growth in shareholders equity from internal capital generation and capital raisings. In addition, AM Best considers the company s investment approach prudent, with the majo