AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Malaysian Life Reinsurance Group Berhad (Malaysian Life Re) (Malaysia). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Malaysian Life Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. In addition, the ratings factor in a neutral holding company impact from Malaysian Life Re’s majority ownership by the Life Insurance Association of Malaysia (LIAM) via L.I.A.M. Holding Sdn. Bhd.

Malaysian Life Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level as of 31 December 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). The company employs a prudent capital management approach that supports an appropriate regulatory solvency position, and prospective risk-adjusted capitalisation is expected to be maintained at the strongest level over the medium term. AM Best views Malaysian Life Re’s investment strategy as generally conservative, with investment assets allocated to cash, deposits and fixed-income securities that are mostly well-rated.

AM Best assesses Malaysian Life Re’s operating performance as adequate. The company reported positive earnings over the past five years (2021-2025), primarily driven by robust investment income, arising from interest income and fair value gains from its bond investments. However, operating earnings exhibited heightened volatility over this period, as they are exposed to interest rate movements. In 2025, Malaysian Life Re recorded a favourable return-on-equity ratio of 10.8%, due mainly to market yield movements.

AM Best assesses Malaysian Life Re’s business profile as neutral. The company is the sole domestic life reinsurer in Malaysia, with life, health and family retakaful business comprising its reinsurance operation. The company has a well-established market position in Malaysia’s life reinsurance market. Malaysian Life Re benefits from its longstanding relationships with key cedants, which are also the members of LIAM, its ultimate parent. The company also benefits from underwriting and operational support from Reinsurance Group of America (RGA), Incorporated, its minority shareholder. In recent years, Malaysian Life Re exhibited moderate underwriting growth, partly driven by health reinsurance.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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