KUALA LUMPUR (Feb 5): RAM Rating Services Bhd (RAM) has affirmed the rating of MNRB Holdings Bhd (MNRB) and its wholly owned reinsurance company, Malaysian Reinsurance Bhd (Malaysian Re), as stable.

In a joint statement on Monday, RAM said the ratings reflect Malaysian Re’s strong market position in the domestic general reinsurance space and the adequate capitalisation of MNRB’s key operating subsidiaries. 

The credit rating agency affirmed the ratings of AA3 for MNRB’s RM320 million senior sukuk, and A1 for the group’s subordinated sukuk. 

For Malaysian Re, RAM has affirmed the ratings of AA2/P1 for the group’s insurer financial strength and AA3 for RM250 million subordinated medium-term note programme. 

RAM has also affirmed the ratings of AA2 and AA3 for the senior sukuk and subordinated RM800 million medium-term notes programme, respectively. 

“MNRB’s gearing and double leverage ratios were unchanged and stayed well below the rating limits at 0.3 times and 1.1 times, respectively, as at end-September 2023,” RAM added.

MNRB reported a higher pre-tax profit of RM151.0 million in the financial year ended March 2023, up 18% year-on-year, driven by stronger premiums from all subsidiaries and better investment returns. 

Pre-tax profit improved further to RM135.9 million in the first half of financial year 2024 (1H2024), mainly due to a recovery in investment and underwriting performance.

The capital adequacy ratios of the group and its key operating subsidiaries as at end-September 2023 stayed above their respective individual target capital levels and the regulatory minimum of 130%, which are expected to support the group’s growth plans in the near- to medium term.

At market close on Monday, shares of MNRB settled at RM1.42, up two sen or 1.43%. Its market capitalisation stood at RM1.10 billion.