Malaysian Life Re stays well capitalised despite volatile earnings

The company posted positive results in every year from 2021 through 2025.

Malaysian Life Reinsurance Group Berhad’s (Malaysian Life Re) capitalisation is expected to remain at the strongest level over the medium term, according to AM Best.

Malaysian Life Re’s risk-adjusted capitalisation was at the strongest level as of 31 December 2025, based on AM Best’s Best’s Capital Adequacy Ratio (BCAR). The reinsurer follows a conservative investment strategy, with assets mainly allocated to cash, deposits and mostly well-rated fixed-income securities.

Malaysian Life Re has reported positive earnings in each of the past five years, from 2021 to 2025, mainly supported by investment income from interest earnings and fair value gains on bonds. 

However, operating earnings have been volatile because of exposure to interest rate movements.

Its return on equity was 10.8% in 2025, helped mainly by movements in market yields.

Malaysian Life Re is Malaysia’s sole domestic life reinsurer, providing life, health and family retakaful coverage. 

It has an established position in the Malaysian life reinsurance market and longstanding relationships with key cedants, which are also members of its ultimate parent, the Life Insurance Association of Malaysia.

The company also receives underwriting and operational support from minority shareholder Reinsurance Group of America (RGA). Its underwriting has grown moderately in recent years, partly due to higher health reinsurance business.