[RAM] RAM Ratings assigns P1 rating to MNRB's proposed RM500 mil Commercial Papers Programme

RAM Ratings has assigned a P1 rating to MNRB Holdings Berhad’s (MNRB or the Group) proposed RM500 million Commercial Papers (CP) Programme, reflecting the Group’s strong linkage to its core operating subsidiary and principal earnings contributor, Malaysian Reinsurance Berhad (Malaysian Re, rated AA₂/Positive/P1).

Malaysian Re’s established domestic franchise, resilient earnings profile, healthy liquidity, strong capitalisation and reserve coverage continue to underpin the Group’s credit standing. The Group’s ratings also reflect MNRB’s structural subordination as a non-operating holding company and its moderate company-level leverage. As such, the Group’s long-term rating is notched down from Malaysian Re’s issuer rating while the short-term rating is unaffected. MNRB’s company-level gearing and double leverage ratios were 0.3 times and 1.0 time, respectively, as at end-June 2026. The Group’s planned acquisition of Labuan Reinsurance (L) Ltd is expected to temporarily raise gearing to 0.54 times, above our rating threshold, before easing following dividend upstreaming from the acquired entity.

Malaysia Re remains a leading general reinsurer in Malaysia, holding a 59% domestic market share in 2025 (2020-2024: 60%-70%). The reinsurer’s underwriting performance strengthened further in FY Mar 2026, with its combined ratio improving to 74% from 78% a year earlier, reflecting a benign catastrophe experience and disciplined underwriting. This, coupled with higher profit contributions from its subsidiaries and stronger investment returns, lifted the Group’s pre-tax profit by 36% to RM619 mil. In 1Q FY Mar 2027, pre-tax profit continued its uptrend, rising 7% y-o-y to RM207 mil.

MNRB and its key subsidiaries maintained capital adequacy ratios above both their respective internal target capital levels and the regulatory minimum of 130% as at end-June 2026. Combined with healthy reserves coverage, these levels are supportive of the entities’ near-to-medium-term business growth plans, subject to the pace of expansion and dividend flows to the holding company.

Separately, MNRB’s proposed sale of its Takaful Ikhlas entities to Bank Kerjasama Rakyat Malaysia Berhad is not expected to have any rating impact as earnings are mainly derived from Malaysian Re, which anchors the Group’s ratings.


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Lee Yee Von
(603) 2708 8217
yeevon@ram.com.my

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

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