A.M. Best Affirms Ratings of Malaysian Reinsurance Berhad.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Malaysian Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Berhad (Malaysian Re) (Malaysia). The outlook for both ratings is stable. The ratings reflect Malaysian Re's stable and excellent underwriting performance, conservative investment portfolio and strong market presence in Malaysia. The ratings also recognize the group synergy that the company enjoys as a member of MNRB Holdings Berhad (MNRB Group). Malaysian Re has outsourced its administrative activities to its parent company, MNRB Group. MNRB Group formed a Group Shared Services shared services, n.pl the administrative, clinical, or other service functions that are common to two or more hospitals or their health care facilities and used jointly or cooperatively by them. Unit (GSSU GSSU Georgia Southwestern State University ) to centralize cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. the common activities from its subsidiaries. A.M. Best believes that this arrangement enables Malaysian Re to achieve a more cost effective structure. Malaysian Re has a conservative investment strategy. As at March 31, 2008, the company invested approximately 53% of its total assets in cash and bonds. With this conservative investment portfolio, the company generated a stable investment income that has consistently contributed to a significant bottom line to its overall operating results. The company has more than a 50% market share in Malaysia, on the basis of net reinsurance premiums placed. In addition, Malaysian Re provided market services to the insurance industry. With over 30 years of operation in Malaysia, the company has established a strong relationship with the ceding cede tr.v. ced·ed, ced·ing, cedes 1. To surrender possession of, especially by treaty. See Synonyms at relinquish. 2. companies in Malaysia, and A.M. Best believes that the company can maintain its market leader position in Malaysia. Offsetting factors include the expected further expansion in overseas business and the capital needs of Malaysian Re's holding company. Malaysian Re plans to further expand its overseas business from various sources. In addition, MNRB Group is now considering further increasing its investments in subsidiaries and associated companies associated company associate n → Partnerfirma f associated company n → società collegata . Ongoing capital support associated with MNRB Group's investment plans and prospective premium growth from overseas business will exert pressure on the company's risk-adjusted capitalization. Nonetheless, A.M. Best believes that Malaysian Re's current risk-adjusted capitalization, as demonstrated by Best's Capital Adequacy Ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. (BCAR BCAR Brunswick County Association of Realtors BCAR British Civil Airworthiness Requirements BCAR Bullitt County Animal Rescue (Shepherdsville, KY) BCAR Business Case Analysis Report BCAR Beaver Creek Array BCAR Buffalo Civic Auto Ramps, Inc. ), is adequate to support its ratings. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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