Malaysia’s Tune Protect Re Credit Ratings Affirmed By AM Best

KUALA LUMPUR, Dec 12 (Bernama) -- AM Best has affirmed the financial strength rating of B++ (Good) and the long-term issuer credit rating of “bbb+” (Good) of Malaysia’s Tune Protect Re Ltd (TPR) with a stable outlook on these credit ratings (ratings).

In a statement, AM Best said the ratings reflected TPR’s balance sheet strength, which was assessed as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

TPR’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which is expected to remain comfortably at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio.

The company has a generally conservative investment portfolio with investment assets held predominantly in unit trust funds, whereby the underlying assets are mainly fixed-income securities with good credit quality.

AM Best’s balance sheet strength analysis also incorporates a neutral holding company impact from Tune Protect Group Berhad (TPG), TPR’s ultimate parent.

TPR’s operating performance was assessed as strong, supported by robust underwriting results. Technical profitability is predominantly driven by favourable loss experience of its travel insurance business, while investment income has historically been a positive contributor to overall earnings, contributed by interest income and gains from its bond investments.

Last year, the company reported a combined ratio of 81.9 per cent and a return-on-equity ratio of 14.1 per cent. In the first three quarters of 2025, TPR’s operating performance remains favourable, supported by strong technical profitability and investment performance.

The credit rating agency also assesses TPR’s business profile as limited. It is a niche reinsurer focused on travel-related insurance products that leverages TPG’s in-house technology platform to support and distribute policies in collaboration with corporate partners, including airlines and travel agencies.

-- BERNAMA