AM Best Affirms Credit Ratings of Malayan Insurance Co., Inc.

SINGAPORE–(BUSINESS WIRE)–AM Best has confirmed the Financial Strength of B++ (Good) and the Long Term Creditor of “bbb+” (Good) of Malayan Insurance Co., Inc. (Malayan) (Philippines). The loan format (parts) is fixed.

These ratings reflect the strength of the Malayan paper, which AM Best considers to be very strong, as well as its operational efficiency, neutral business history and sound business management. In addition, the vote results in a neutralization of the company’s ownership by Pan Malayan Management and Investment Corp.

Malayan’s strong balance sheet assessment is supported by a financial turnaround that is expected to remain relatively strong in the short term, as measured by Best’s Capital Adequacy Ratio (BCAR). Even so, the company’s capital adequacy remains strained by the effects of floods, typhoons and earthquakes in the Philippines. The company’s high reliance on reinsurance to register risks and the risk of large assets remains a limiting factor, as well as the exposure of companies that are not counted on the level of global financial strength. The strength of Malayan’s balance sheet remains a prominent market risk and the risk posed by its capital stock. However, the company has made strides in mitigating these risks by reducing its leverage.

AM Best considers Malayan’s performance to be satisfactory. The company reported five-year compound growth rates of 101.4% and 4.1% (2017-2021), respectively. The entire writing process has been hampered by volatility and disappointing losses from its fire business in recent years, led by disasters and major loss events. However, the company continues to show good technical results in its automotive business, which helps offset the poor performance of its motor business. Investments, which include interest and dividends, continue to contribute to Malayan’s overall earnings.

An analysis of the company’s neutral business profile shows the company’s status as the largest non-life insurance company in the Philippines based on recorded revenue in 2021. Malaya also benefits from its partnership with the Yuchengco Group of Companies, the largest group in the Philippines, in the Philippines. terms of sign and division. Chimalaya shows a strong commitment to digital transformation, which is a key pillar of the company’s long-term strategy for growing its retail business.

Ratings are given to organizations that have been rated before they are published. Unless otherwise stated, the ratings have not been changed following this communication.

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