Malaysian Re expects the upcoming renewal season for the Asian reinsurance sector to build on the positive momentum seen in 2025, supported by improved pricing and broader coverage options. We spoke to Malaysian Re’s Mr Ahmad Noor Azhari Abdul Manaf about his view on the market and the prospects for the company.
Asia’s reinsurance market is heading into the next renewal season on a steady footing, with conditions expected to remain favourable for cedants. Building on the positive momentum of 2024, Malaysian Re is bullish on growth, projecting improved pricing, broader coverage options and greater flexibility in contract terms and structures. This is expected to create a supportive environment for insurers seeking protection.
“Cedants have been able to secure better pricing and improved coverage options as reinsurers show greater flexibility in terms and structure. At the same time, underwriting discipline remains a priority, particularly for accounts or regions with higher volatility,” said Malaysian Re president and CEO Ahmad Noor Azhari Abdul Manaf.
“Overall, we anticipate a more competitive but stable renewal environment. Reinsurers will deploy capital strategically, while cedants can leverage market conditions to optimise their programmes,” he added.
According to a September 2024 report by credit ratings firm AM Best, the 2024 renewal season was more orderly than the year prior. Loss-free programmes saw small, single-digit rate increases, while programmes affected by Typhoon Doksuri – the costliest event in Asia in 2023 – experienced significantly higher rate hikes.
There was also pressure on the lowest layers of catastrophe coverage amid rising attachment points in recent years, said AM Best. By contrast, upper layers had ample capacity in 2024, resulting in more favourable terms. This environment prompted some insurers to consider multi-year contracts for the lower layers to lock in pricing and secure capacity for the next three years.
Growth strategy
Mr Ahmad Noor Azhari identified two critical focus areas to drive growth in an increasingly competitive reinsurance market: ensuring the right resources are in place and leveraging technology. According to him, the company recognises that sustainable expansion requires not just ambition, but also a careful balance of talent, capital and operational efficiency.
He emphasised the importance of having agile and highly skilled talent, as well as a strong capital base, to support strategic initiatives without compromising effectiveness or stability. “Talent alone is not enough,” he said. “We will also leverage technology to ease human resource pressures, streamline operations, and enhance overall efficiency.”
In addition, Mr Ahmad Noor Azhari highlighted that prudent capital management remains an integral part of the company’s growth strategy. By integrating these pillars – talent, technology and capital – Malaysian Re remains committed to strengthening its competitive positioning, optimising risk management and delivering long-term, sustainable growth in the evolving reinsurance landscape.
Bank Negara Malaysia (BNM) data show that Malaysia’s general reinsurance industry has seen steady expansion over the past two years, with reinsurance accepted premiums rising from by about 17% to RM1.77bn from 2023 to 2024, underscoring the industry’s resilience.
According to Malaysian Re, the general reinsurance market has been anchored by fire (property) business, which accounts for a large share of reinsurance premiums. Engineering and infrastructure-related risks form the next largest segment, with medical and personal accident rounding out the top three. These lines drive general reinsurance demand, with growth expected to continue along a similar path.
Supporting the domestic market
As Malaysia’s national reinsurer, the company continues to emphasise its developmental role in strengthening the domestic insurance sector. This includes supporting the creation of new products, providing additional capacity and forming partnerships designed to generate long-term value for the market.
“While we cement our domestic and ASEAN leadership position, we will also continue our growth trajectory by expanding our footprint in global markets and exploring new lines of business that complement our existing strengths,” Mr Ahmad Noor Azhari said.
“Over the years, we have built strong partnerships with local and regional insurers and reinsurers, giving us both scale and credibility in the markets we serve,” he added.
Malaysian Re is the largest reinsurer in Malaysia and the largest national reinsurer in ASEAN. It builds on a strong performance in the financial year ended 31 March 2024 (FY2024), when its insurance/takaful service result reached MYR341m (US$77m), compared with a loss of MYR2m in FY2023. The improvement was driven by lower catastrophe losses, according to Fitch Ratings. The firm holds about 60 to 70% of the domestic general reinsurance industry’s gross premiums.
“Coupled with a strong rating and a stable capital base, we are well positioned to expand into new markets and business lines, thus further strengthening our competitive positioning,” Mr Ahmad Noor Azhari noted.
Credit ratings agency Fitch Ratings has affirmed Malaysian Re’s Insurer Financial Strength (IFS) rating at ‘A’ (Strong) with a stable outlook. AM Best has also affirmed the Financial Strength Rating of ‘A-’ (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ with a stable outlook.
The reinsurance sector in the Asia-Pacific region has also been posting growth. AM Best data show that reinsurance composite insurance revenue grew by 8.8% under IFRS 17, with the composite’s combined ratio reflecting further improvement in profitability. The combined ratio was recorded at 94.5 in 2022, improving to 91.6 in 2023. Return on equity also surged from 0.1% to 9.2%.
AM Best attributed Asia-Pacific reinsurers’ strong top-line growth and favourable earnings to a more stable investment environment and benign catastrophe activity. A