The rating reflects Malayan Insurance’s excellent capitalization, leading market position and stable income, supported by strong investment performance. The rating also recognizes the extensive reinsurance program with financially-strong reinsurers.
Malayan Insurance’s capital position at the end of its fiscal year 2003 is P3.6 billion ($65 million), which is 43 percent of total assets. It has been growing at an average 10 percent per year, considered a benchmark for the country’s non-life insurance industry.
Risk-based capitalization, as measured by Best’s capital adequacy ratio (CAR), has been above 160 percent for the last five years. Also supporting capitalization is the extensive reinsurance protection of the company.
In the period under review, the non-life insurer reinsured 88 percent of its fire business through international brokers.
Malayan Insurance was founded in 1930 and for the last 33 years, ranked number one in terms of written premium in the Philippine non-life insurance market. The company has a premium market share of 12 percent in the non-life industry, which includes over 100 non-life companies.
Its net income in the same period grew to P373 million or double the P190 million in 2002.
The non-life insurer covered over P100 billion worth of properties of more than 1,000 companies and thousands of individual clients.
Of the top 10 insurance brokers, Malayan Insurance was able to corner nearly eight percent of the total pie worth a little over P1 billion. The top 10 brokers produced P13.9 billion worth of premiums last year.
It has joint venture subsidiaries with internationally renowned companies such as Tokio Marine Nichido Insurance Co. and Zurich Insurance Co.