[RAM] RAM Ratings assigns AA2/Stable/P1 financial strength ratings to Syarikat Takaful Malaysia Keluarga

RAM Ratings has assigned AA₂/Stable/P1 financial strength ratings to Syarikat Takaful Malaysia Keluarga Berhad (STMKB or the Group). The ratings reflect STMKB’s entrenched position as a leading takaful operator, robust and growing earnings generation, consistent underwriting profitability and capital strength.

STMKB is among the largest takaful operators in Malaysia, capturing over 20% share in both family and general takaful new business (NB) and gross contributions in 1H 2025. Its 11.4% share of NB in the overall life and family takaful industry positions the Group as a mid-tier player. With pre-tax return on assets averaging 4% in the last three years, STMKB’s profitability is robust relative to peers. Its revenue profile is well-balanced between family takaful and general takaful, with the former contributing an average 65% to pre-tax profits over the last three years. Investment income makes up the balance of its earnings.

Both STMKB and its wholly-owned general takaful subsidiary (Syarikat Takaful Malaysia Am Berhad) possess solid capital buffers, with company-level capital adequacy ratios comfortably exceeding individual target capital levels and the regulatory minimum of 130%. As at end-September 2025, the Group’s financial leverage ratio was a healthy 12%.

STMKB’s business is however, constrained by limited product diversification, with significant reliance on single-pay credit takaful products which account for 60%-70% of NB contributions. These products are primarily distributed through six bank partners and Lembaga Pembiayaan Perumahan Sektor Awam; this exposes the Group to NB fluctuations tied to partner financing strategies and broader credit demand. The high proportion of single-pay products challenges long-term earnings sustainability and is a rating constraint. Efforts to increase regular-contribution products are ongoing but will take time to gain meaningful traction.

We maintain coverage on STMKB’s RM1 billion Tier-2 Subordinated Sukuk Wakalah Programme (2025/-), which was assigned a AA₃/Stable rating in August 2025.


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