Malaysian Re Boosts Profit and Expands Market

Malaysian Re has made significant strides in recent years, with a notable boost in profit and expansion of its market presence. The company's revenue has increased by 15% year-over-year, driven by its strategic partnerships and diversified product offerings.

Its focus on expanding into new markets has paid off, with a notable increase in its global presence. Malaysian Re now has a presence in over 20 countries worldwide.

The company's commitment to innovation has also been a key factor in its success, with the introduction of new products and services that cater to the evolving needs of its clients. This has helped to increase its market share and establish it as a leader in the industry.

Malaysian Re's expansion plans are expected to continue, with a focus on further growth in Asia and the Middle East.

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MNRB Holdings Berhad, the parent company of Malaysian Re, has seen a significant increase in its reinsurance profit. The company's reinsurance and retakaful business, Malaysian Re, posted a net profit of RM86.1 million for the first quarter ended 30 June 2024.

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This represents a 38.2% increase from the prior year period, a notable achievement in the industry. The company's financial results for Q1 FY2025 have been released, and they show a strong start to the year.

The RM86.1 million net profit from Malaysian Re is a significant contribution to MNRB Holdings' overall financial performance. This increase in profit is a testament to the company's efforts to grow and improve its business.

The company has stated that the increase in profit is a result of its hard work and dedication to providing high-quality services to its customers. This commitment to excellence has paid off in a big way, with a significant increase in profit.

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Pacific Life has been a key partner for Malaysian Re's Retakaful Division (MRRD) since 2019. They've worked together to provide sustainable retakaful solutions to Takaful Operators.

This collaboration has been extended through a Memorandum of Understanding (MoU) between Malaysian Re and Pacific Life Re Limited, Singapore Branch.

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Malaysian Re is a leading reinsurer in the region, with a strong presence in the market since its establishment in 1993. The company has a long history of providing innovative reinsurance solutions to its clients.

Malaysian Re has a diverse portfolio of businesses, including reinsurance, takaful reinsurance, and insurance-linked securities. The company has a significant presence in the Asia-Pacific region, with operations in Malaysia, Singapore, and other countries.

Malaysian Re has a strong commitment to sustainability and has been recognized for its efforts in this area. The company has set ambitious targets to reduce its carbon footprint and has implemented various initiatives to achieve this goal.

Malaysian Re has a talented team of professionals who are dedicated to delivering exceptional service to its clients. The company has a strong culture of innovation and excellence, which has enabled it to stay ahead of the curve in the rapidly changing reinsurance market.

Malaysian Re received approval from Bank Negara Malaysia to conduct family and general retakaful business in 2015.

Fitch Ratings upgraded Malaysian Re's Insurer Financial Strength (IFS) rating to ‘A’ (Strong) from ‘A−’ (Strong) with a Stable Outlook on 24 January 2019.

Malaysian Reinsurance Berhad, or Malaysian Re, operates as a reinsurance company, a takaful company, and an insurance company in Malaysia.

Here are some key facts about MNRB Holdings Berhad, the parent company of Malaysian Re:

Malaysia's insurers and reinsurers have adequate capacity for flood risk, which is great news for the country.

The report highlights that 32.3 million people live in the country, with 5 million of them residing in flood-prone areas.

Despite the low penetration of insurance in the country, with fewer than 25% of homeowners and 5% of vehicles insured, the capacity for flood risk is adequate.

Market liberalization in Malaysia's re/insurance industry is expected to bring benefits to both customers and re/insurers.

A recent report from Malaysian Reinsurance Berhad suggests that a more liberal market will be beneficial for customers.

Almost all senior re/insurance executives surveyed by Malaysian Re, a total of 30, held a positive view of a more liberal market.

The de-tariffication of dominant property classes, motor and fire, is a key factor in this shift towards a more liberal market.

This change will allow re/insurers to offer more competitive pricing, which can lead to increased customer satisfaction.

Malaysian Reinsurance Bhd (Malaysian Re) has licensed AIR Worldwide's catastrophe risk modelling platform to help it manage its existing portfolio and assess new risks.

Malaysian Re is a wholly-owned subsidiary of MNRB Holdings Bhd.

The platform will be used to enhance its risk pricing and portfolio management capabilities, and Malaysian Re will deploy it to get a better understanding of its risks.

The catastrophe modelling solution will help Malaysian Re make more informed decisions about its portfolio and pricing.

Malaysian Reinsurance Berhad (Malaysian Re) has received approval from Bank Negara Malaysia (BNM) to renew its voluntary cessions (VC) for another three years, until the end of 2024.

This renewal will allow Malaysian Re to continue receiving automatic cessions as well as automatic participation in all domestic facultative reinsurance.

The VC is a significant agreement that will benefit Malaysian Re in its business operations.

Malaysian Re has collaborated with Pacific Life Re to provide sustainable retakaful solutions to Takaful Operators, with their Memorandum of Understanding (MoU) first established in 2019.

This partnership has been extended, allowing Malaysian Re's Retakaful Division (MRRD) to continue working with Pacific Life Re to provide retakaful products.

The MoU was signed by Zainudin Ishak, President and Chief Executive Officer (CEO) of Malaysian Re and Andrew Gill, Managing Director Asia of Pacific Life Re.

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Malaysian Re and Pacific Life Re Limited, Singapore Branch have signed an extension of their Memorandum of Understanding (MoU) on providing sustainable retakaful solutions to Takaful Operators.

This collaboration was first established in 2019, and since then, Malaysian Re's Retakaful Division (MRRD) has worked with Pacific Life Re to provide retakaful solutions.

The extension of the MoU aims to support Family Takaful Operators with retakaful products, which is a key aspect of their business.

Malaysian Re has a steadfast commitment to using the United Nations Sustainable Development Goals (UN SDGs) as a roadmap for guiding its sustainability practices.

The company has made significant strides in its implementation plans, including improving its Business Remodelling framework to incorporate environmental, social and governance (ESG) agenda in its underwriting strategy.

As part of its commitment to addressing climate change, Malaysian Re has proactively bolstered its capacity to provide catastrophe reinsurance protection.

Rokstone Aviation has confirmed a partnership with Malaysian Re through a reinsurance agreement, which allows it to write more hull and liability policies. This agreement is a significant vote of confidence in Rokstone Aviation's capabilities.

Malaysian Re has also signed a Memorandum of Understanding (MOU) partnership agreement with Argo Managing Agency. This partnership will provide underwriting and technical support to Argo Managing Agency.

The partnership between Malaysian Re and Argo Managing Agency is a significant move, as Argo Managing Agency manages ArgoGlobal Syndicate 1200 and Ariel Re Syndicate 1910 at Lloyd’s.

Malaysian Re has seen robust growth in the takaful and retakaful sectors, surpassing conventional insurance in both general and family domains since 2016. This growth is attributed to the value-added services they offer, including underwriting engines, shariah reviews/audits, and comprehensive underwriting and claims assessments.

Their approach also transcends mere price competition, focusing on providing more than just a competitive price. This strategy has contributed to their success in the takaful and retakaful markets.

Malaysian Re is strategically expanding its international reach, targeting markets in Asean, such as Indonesia and Brunei, as well as countries with notable Muslim minority populations, like Thailand and the Philippines.

Pacific Life Re Limited has partnered with Malaysian Reinsurance Berhad to provide retakaful solutions to Family Takaful Operators.

Malaysian Re and Pacific Life Re have signed a Memorandum of Understanding (MoU) to make this collaboration possible.

This partnership was first established in 2019, and since then, Malaysian Re's Retakaful Division has worked with Pacific Life Re to provide retakaful solutions.

The MoU was signed by Zainudin Ishak, President and Chief Executive Officer (CEO) of Malaysian Re and Andrew Gill, Managing Director Asia of Pacific Life Re.

The extension of their Memorandum of Understanding (MoU) in 2023 aims to provide sustainable retakaful solutions to Takaful Operators.

This collaboration has been working to provide retakaful products to Family Takaful Operators, and their efforts are ongoing.

The ASEAN region has a significant non-life insurance protection gap that needs to be addressed. New digital technologies represent the most promising remedy to closing this gap.

A report by Alms & Company and Malaysian Re found that digital technologies are key to bridging this gap. According to the ASEAN Insurance Pulse 2018 report, surveyed re/insurance executives from across the Association of Southeast Asian Nations agree on the importance of technology in solving this issue.

The ASEAN region will need to find more than $800 billion of investment for energy supply in order to meet its expected demand for power in 2050. This highlights the need for innovative solutions to manage risk and provide protection to communities.

The takaful sector is growing rapidly, driven by Malaysian Re's expansion efforts. This growth is evident in the company's retakaful division, which has been offered since 2016.

The retakaful sector has surpassed conventional insurance in both general and family domains. This is a significant achievement, highlighting the increasing demand for takaful products.

Malaysian Re's approach to retakaful is not just about price competition, but also about offering value-added services. These services include underwriting engines, shariah reviews/audits, and comprehensive underwriting and claims assessments.

The company is strategically targeting markets in Asean, including Indonesia and Brunei, as well as countries with notable Muslim minority populations, such as Thailand and the Philippines.

RAM Ratings has reaffirmed MNRB Holdings Berhad’s (MNRB) and Malaysian Reinsurance Berhad’s (Malaysian Re) ratings. The one-notch difference between MNRB’s senior debt issue rating and Malaysian Re’s AA2 long-term insurer financial strength rating reflects the former’s structural subordination as a non-operating holding company and its moderate debt load at the holding-company level.

MNRB’s dominant position in the domestic general reinsurance industry is a key factor in its rating. Its primary subsidiary, Malaysian Re, had retained a significant share (66%) of the industry’s gross reinsurance premiums in 2019.

Malaysian Re’s long-standing relationships with local cedants and regulatory voluntary cession arrangements support its well-established franchise in the domestic market. This is reflected in the Group’s subsidiaries’ healthy capitalisation and strong reserves coverage.

However, MNRB’s credit profile hinges on Malaysian Re’s performance, as the latter is the largest contributor to the Group’s earnings.

The capital adequacy ratios of the Group’s main subsidiaries remained comfortably above their individual target capital levels and the regulatory minimum of 130% as at end-September 2020.

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Malaysian Reinsurance Berhad, commonly known as Malaysian Re, is Malaysia's largest reinsurer, commanding over 60% of reinsurance accepted premium in the country.

The company has a strong market presence in Asia and the Middle East, and is also the region's largest national reinsurer by asset size in the ASEAN market.

In 2005, Malaysian Re underwent a restructuring exercise, resulting in the transfer of its reinsurance license, business, and assets to its subsidiary company, Malaysian Reinsurance Berhad.

This restructuring led to the formation of MNRB Holdings Berhad (MNRB), which is now listed on the Bursa Malaysia.

The retakaful sector has emerged as a pivotal growth engine for Malaysian Re, with the company's takaful and retakaful segments exhibiting robust growth over the years, surpassing conventional insurance in both the general and family domains.

Malaysian Re's international expansion efforts are strategically pinpointed, with target markets including Indonesia, Brunei, Thailand, the Philippines, Pakistan, Bangladesh, and the Middle East.