KUALA LUMPUR (April 6): RAM Rating Services Bhd has raised its outlook on MNRB Holdings Bhd (KL:MNRB) and its wholly owned reinsurance subsidiary Malaysian Reinsurance Bhd to positive from stable.

In a joint statement on Monday, RAM said all key ratings for MNRB and Malaysian Re have been reaffirmed with the ratings reflecting improvement in Malaysian Re’s underwriting performance, adding that the reinsurer recorded higher revenue and pre-tax profit in recent periods.

The credit rating agency affirmed the ratings of AA3 for MNRB’s RM420 million senior sukuk and A1 for subordinated sukuk.

Malaysian RE’s insurer financial strength ratings were maintained at AA2/P1, while its RM250 million subordinated medium-term note (MTN) programme was affirmed at AA3. The reinsurer’s RM800 million senior and subordinated MTN programme ratings were also unchanged at AA2 and AA3.

MNRB’s core businesses include reinsurance through Malaysian Re and takaful operations under Takaful Ikhlas Family Bhd and Takaful Ikhlas General Bhd.

In a separate statement on April 3, RAM said Malaysian RE's two-year average combined ratio improved to 78% for the financial year ended March 31, 2025.

It added that the reinsurer also continues to hold a strong position in the local general reinsurance market and has expanded overseas, reducing its dependence on Malaysian business.

The potential impact of the Middle East conflict is expected to be limited, as property policies exclude war-related risks, while marine exposure is not significant.

“Impact from the recently escalating Middle East war is expected to be manageable as property risks covered exclude war, while marine coverage is not significant to Malaysian Re,” said the credit rating agency.

At the holding company level, MNRB’s ratings reflect its position as a non-operating entity and its reliance on Malaysian Re. As at end-December 2025, the group’s gearing and double leverage ratios stood at 0.3 times and one times respectively, within RAM’s thresholds.

The group and its key subsidiaries maintained capital adequacy ratios above internal targets and the regulatory minimum of 130%, supporting near- to medium-term growth plans.

Shares of MNRB Holdings closed up by one sen or 0.44% at RM2.29 on Monday, valuing the group at RM1.79 billion.