Malayan Insurance retains ‘Good’ rating

Global insurance rating agency A.M. Best has retained its “B plus plus” or “Good” rating on Malayan Insurance Co. Inc., one of the country’s leading non-life insurance companies.

A.M. Best also retained the “bbb plus” on Malayan Insurance’s issuer credit rating, with a stable outlook for both categories.

“The ratings reflect Malayan Insurance’s strong risk-adjusted capitalization and its business profile in the Philippine non-life insurance market. Its risk-adjusted capitalization is strong and supported by its low underwriting leverage,” the rating agency said.

Last year, Malayan Insurance reported paid-up capital worth P780 million, fourth highest among the 70 non-life insurers. Networth stood at P3.9 billion in the same period.

The insurance rating agency said Malayan Insurance manages credit risk by maintaining a panel of strongly rated reinsurance counterparties.

“It has a strong profile in the corporate segment of the Philippine non-life market, ranking as the largest in terms of premiums and second largest in terms of capital and surplus,” the report said.

In terms of net income, the insurer was third highest among its peers with P296.2 million.

Malayan Insurance is the only non-life insurer in the country rated by A.M. Best.

In the 2015 report of the Insurance Commission (IC), Malayan Insurance’ gross premium written amounted to P7.5 billion, tops in the industry, and P2.5 billion in premiums earned, second best.

In terms of assets, the non-life insurance of the Yuchengco Group was second best with P16.8 billion.

Last year, the non-life insurance industry reported total assets of P163 billion, total gross premium written of P71.4 billion, and total premiums earned at P33.5 billion.