FW: Etiqa's ratings unaffected by separation of businesses

 

Published on 15 Jan 2018.

RAM Ratings maintains the AAA/Stable/P1 insurer financial strength ratings of Etiqa General Insurance Berhad (EGIB) and Etiqa Family Takaful Berhad (EFTB), notwithstanding the separation of their general and life insurance businesses, and general and family takaful businesses. EGIB and EFTB were formerly known as Etiqa Insurance Berhad and Etiqa Takaful Berhad, respectively. The ratings consider the strategic importance of the 2 entities to the larger Maybank Ageas Holdings Berhad (MAHB or the Group), whose operations remain holistically managed along business lines. Accordingly, the AA1/Stable ratings of EGIB’s RM500 million Subordinated Bonds (2013/2023) and EFTB’s RM300 million Subordinated Sukuk Musharakah (2014/2024) remain unchanged.

The corporate exercise was conducted to comply with Bank Negara Malaysia regulations requiring composite insurers and takaful operators to legally segregate their operations into single-licence companies. On 1 January 2018, the Group’s life insurance and general takaful businesses were each transferred to Etiqa Life Insurance Berhad (ELIB) and Etiqa General Takaful Berhad (EGTB). ELIB and EGTB are newly incorporated entities. The four separate companies remain wholly owned by MAHB and continue to operate under a shared “Etiqa” brand name.

 

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