Malayan Insurance Co., Inc. (Malayan) has received a reaffirmed Financial Strength Rating (FSR) of B++ (Good) from AM Best for the 21st consecutive year. The insurer also holds a Philippines National Scale Rating (NSR) of aa+.PH (Superior).
AM Best said the ratings reflect Malayan’s balance sheet strength, which it assessed as strong, and its enterprise risk management. The company’s risk-adjusted capitalization is expected to stay at the strongest level over the medium term, giving it a stable capital base to support operations.
“The recent pressures on underwriting performance are a reflection of the current industry landscape, especially with the increased natural catastrophes affecting the entire sector,” said Paolo Abaya, CEO of Malayan. “However, Malayan remains fully committed to navigating these conditions with resilience and strategic agility.“
The ratings agency revised Malayan’s outlook to negative from stable, citing factors that continue to affect the industry and contribute to underwriting performance volatility. Despite this, the company has maintained positive overall earnings, supported mainly by investment income.
Malayan said it is taking steps to address the challenges by applying portfolio remediation measures, which AM Best expects to help improve underwriting profitability in the future.
The insurer remains one of the largest non-life insurance companies in the Philippines and is focusing on digital transformation as part of its long-term growth strategy.