[RAM] RAM Ratings affirms Maybank Ageas' AA1/Stable/P1 corporate credit ratings; subordinated bonds at AA2/Stable

RAM Ratings has affirmed Maybank Ageas Holdings Berhad’s (the Group) AA1/Stable/P1 corporate credit ratings and the AA2/Stable rating of its RM3 billion Subordinated Bonds Programme (2021/-). The rating affirmation reflects the Group’s strong insurance and takaful franchise in Malaysia which operates the Etiqa brand, its diversified earnings and risk profile, and sound capitalisation. 

Maybank Ageas is the domestic market leader in the non-life industry with a 17% share of aggregate gross premiums and contributions in 1H 2025. In the life and family takaful segment, it ranks among the top bancassurance players, though less prominent than some larger locally-incorporated foreign life insurers.

As a member of the Malayan Banking Berhad (Maybank) group, Maybank Ageas reaps significant benefits from the Maybank’s extensive network and customer base, which has contributed about a third of aggregate life/family new business (NB) and non-life premiums and contributions over the last five years. However, this also exposes the Group to Maybank’s loan growth strategies and broader credit demand trends.

The Group operates across life, non-life, family takaful and general takaful segments, supporting a diversified earnings and risk profile. Its pre-tax return on assets averaged a healthy 2.4% in the last three years (1H FY Dec 2025: 2.3%; FY Dec 2024: 2.4%). In 1H fiscal 2025, pre-tax profit rose 10.2% y-o-y to RM589.1 mil,  driven by topline growth and reserve releases though these gains were partly offset by mark-to-market and realised losses in its equity portfolio. 

Business growth in 1H 2025 was driven mainly by its Singapore life insurance segment (+50% y-o-y). Non-life premiums/contributions in Malaysia and Singapore grew modestly by 2%, while NB for domestic life and family takaful contracted 24%, reflecting tighter mortgage originations at Maybank, revised sales incentives, and weaker demand for savings/investment-linked products amid policy uncertainties in the US. Maybank Ageas remains focused on expanding regular-premium life and family takaful business, and improving non-life profitability.

The Group and its subsidiaries maintained healthy capital positions with capital adequacy ratios comfortably above their respective individual target capital levels. All subsidiaries are sufficiently capitalised, and well positioned to support future growth and withstand stipulated stress scenarios. Preliminary assessments of Bank Negara Malaysia’s revised risk-based capital framework (RBC2; currently an exposure draft) indicate potential impact on capital levels, although industry engagement is ongoing and implementation has been deferred to 2028. The Group’s financial leverage ratio was a healthy 9% as at end-June 2025, with no plans to take on further debt in the near term.


Analytical contacts
Loh Kit Yoong
(603) 2708 8285
kityoong@ram.com.my

Sophia Lee
(603) 2708 8211
sophia@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my