KUALA LUMPUR: Fitch Ratings has upgraded Malaysian Reinsurance Bhd's (Malaysian Re) Insurer Financial Strength rating (IFS) to 'A' from 'A-'. It said the outlook is stable.
It said on Friday, July 1 the upgrade was to reflect Malaysian Re's --'' Malaysia's largest reinsurer -- stronger financial performance for the FY ended March 2011 and also it continuous efforts to de-risk its balance sheet.
'It also factors in its unchallenged market leadership positioning in Malaysia as well as its continued sound capital position relative to its business profile,' it said.
Fitch said the stable outlook reflected the rating agency's expectation that Malaysian Re will maintain its robust financial fundamentals.
'This is driven by prudent and experienced management which places heavy emphasis on bottom-line profitability as opposed to just top-line growth,' it said.
Malaysian Re's market dominance was likely to remain unchallenged, said Fitch, pointing out to its solid franchise and support from local cedants.
Fitch said the reinsurer's stronger financial performance for FY11 is reflective of prudent management and underwriting.
'Based on preliminary unaudited figures, net income for FY11 was estimated to have totalled MYR140.9m compared with MYR88.6m for the prior year. To support its overall risk profile, Malaysian Re maintains sound risk-based capitalisation,' it added.
It said on Friday, July 1 the upgrade was to reflect Malaysian Re's --'' Malaysia's largest reinsurer -- stronger financial performance for the FY ended March 2011 and also it continuous efforts to de-risk its balance sheet.
'It also factors in its unchallenged market leadership positioning in Malaysia as well as its continued sound capital position relative to its business profile,' it said.
Fitch said the stable outlook reflected the rating agency's expectation that Malaysian Re will maintain its robust financial fundamentals.
'This is driven by prudent and experienced management which places heavy emphasis on bottom-line profitability as opposed to just top-line growth,' it said.
Malaysian Re's market dominance was likely to remain unchallenged, said Fitch, pointing out to its solid franchise and support from local cedants.
Fitch said the reinsurer's stronger financial performance for FY11 is reflective of prudent management and underwriting.
'Based on preliminary unaudited figures, net income for FY11 was estimated to have totalled MYR140.9m compared with MYR88.6m for the prior year. To support its overall risk profile, Malaysian Re maintains sound risk-based capitalisation,' it added.
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