LATEST NEWS    Ministry of Finance (MOF) agrees to provide measures to ease the industries for the transition into the expanded SST | PM Anwar welcomes PETRONAS' continued involvement in Canada’s LNG project, symbolising energy cooperation between the two countries | Malaysia hopes Canada can reconsider visa exemption for Malaysians -- PM Anwar | Malaysia and Canada, as members of the CPTPP, share a determination to champion the principles of free and open trade based on fair and inclusive multilateralism - PM Anwar | PM Anwar congratulates Canadian PM Mark Carney, and that Malaysia is committed to strengthening relations involving trade and investment, defence cooperation, clean energy, digital transformation, and new technologies | Ministry of Finance (MOF) agrees to provide measures to ease the industries for the transition into the expanded SST | PM Anwar welcomes PETRONAS' continued involvement in Canada’s LNG project, symbolising energy cooperation between the two countries | Malaysia hopes Canada can reconsider visa exemption for Malaysians -- PM Anwar | Malaysia and Canada, as members of the CPTPP, share a determination to champion the principles of free and open trade based on fair and inclusive multilateralism - PM Anwar | PM Anwar congratulates Canadian PM Mark Carney, and that Malaysia is committed to strengthening relations involving trade and investment, defence cooperation, clean energy, digital transformation, and new technologies |

AM Best Affirms Excellent Ratings For Malaysia’s Labuan Re 

KUALA LUMPUR, Nov 15 (Bernama) -- Global credit rating agency, AM Best has affirmed Malaysia’s Labuan Reinsurance (L) Ltd (Labuan Re) financial strength rating of A- (excellent) and the long-term issuer credit rating of “a-” (excellent). 

In a statement, AM Best said these credit ratings (ratings) which have a stable outlook, reflected Labuan Re’s balance sheet strength, which was assessed as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Labuan Re’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which is at the strongest level at year-end 2023.

The company adopts a prudent capital management approach to support risk-adjusted capitalisation at the strongest level over the medium term, along with an appropriate regulatory solvency position, with its investment portfolio focused on cash, deposits and fixed-income securities, albeit with modest exposure to higher-risk asset classes such as equities.

Partially offsetting balance sheet strength factors include Labuan Re’s exposure to natural catastrophe risks relative to the size of its capital base, which emanates from its regional reinsurance and international operations through its participation in Lloyd’s syndicates (Lloyd’s).

AM Best views Labuan Re’s operating performance as adequate, in which the company’s earnings were historically driven by investment returns, arising from interest income and gains from its bond and equity investments.

In 2023 and the first half of this year, Labuan Re reported robust operating performance, driven by favourable underwriting results and investment return.

The company’s business profile was assessed as neutral given its position as a well-established regional non-life reinsurer in addition to the company’s business profile continuing to benefit from portfolio diversification through its participation as a corporate member in Lloyd’s.

Despite reduced participation in Lloyd’s business, Labuan Re’s gross premium has exhibited moderate growth, driven by product initiatives and its positioning in the reinsurance market.

-- BERNAMA