Malayan Insurance retains credit rating

MANILA, Philippines — Leading non-life insurer Malayan Insurance Co. Inc. has retained its B++ rating from international credit rating agency AM Best despite market and economic volatility.

In a statement, Malayan said it has kept its B++ (good) rating and received a new long-term issuer credit rating of “bbb” (good) from AM Best.

This reaffirmed Malayan’s strength and creditworthiness despite the economic downturn caused by the pandemic, as well as various natural disasters.

Malayan was also ranked aa+.PH (superior) under its new Philippine National Scale Rating, which means that the insurance firm has the ability to meet all its ongoing financial obligations.

Malayan has received favorable ratings from AM Best for the past eight years.

“These ratings reflect Malayan’s balance sheet strength which we assess as strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management,” AM Best said.

The New Jersey-based credit rating company said that Malayan performed well despite market volatility and natural catastrophes, especially on property lines such as fire and engineering.

The insurer’s good motor performance mitigated the impact of such factors on underwriting results, while investment income remained a major contributor to Malayan’s overall earnings.

Malayan president and CEO Paolo Abaya said the latest ratings are a testament of its claims-paying ability and capability to meet debt obligations.

“To maximize our clients’ experience, we continue to offer innovative products and services that address their current needs and concerns,” Abaya said.

Meanwhile, Malayan’s adjusted long-term issuer credit rating resulted from its increased net retention and heightened vulnerability to natural calamities following changes in its reinsurance program.

A global authority for rating insurance companies, AM Best evaluates and reports the creditworthiness and the prompt ability to pay claims, debts, and other financial obligations of over 16,000 insurance companies worldwide.

A member of the Yuchengco Group of Companies, Malayan is authorized to underwrite the following: aviation, engineering, fire, property, marine, miscellaneous casualty, motorcar, personal accident, travel insurance, and surety bonds.

It is the country’s leading non-life insurance company in terms of gross premiums written since 1970.