KUALA LUMPUR, Feb 24 — RAM Rating Services Bhd (RAM) has reaffirmed MNRB Holdings Bhd’s senior sukuk at AA3/Stable and subordinated sukuk at A1/Stable.

The rating agency also reaffirmed MNRB’s wholly-owned unit, Malaysian Reinsurance Bhd’s (Malaysian Re) insurer financial strength ratings at AA2/Stable/P1 and subordinated medium-term note programme (2015/2030) at AA3/Stable.

“The reaffirmation is premised on MNRB’s dominant position in the domestic general reinsurance industry where Malaysian Re boasts a large share of gross reinsurance premiums (2020: 69 per cent; 2019: 66 per cent),” it said in a statement on Wednesday.

According to RAM, MNRB’s credit profile hinges on Malaysian Re’s as the reinsurer is the largest contributor to the group’s earnings.

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“The group also participates in the domestic general takaful and family takaful segments through subsidiaries Takaful Ikhlas General Bhd (Ikhlas General) and Takaful Ikhlas Family Bhd (Ikhlas Family).

“These businesses have modest franchises in their respective segments and are relatively small contributors to MNRB’s earnings,” it said.

Ikhlas General has a 12 per cent share of general takaful gross contributions, while Ikhlas Family accounted for just four per cent of the family takaful segment’s annual contribution equivalent in 2020. — Bernama

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