Fitch: M&A to Continue in Malaysia Insurance Market

Thu Jul 17, 2014 9:00pm EDT

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Malaysia Insurance Market Dashboard 1H14 here SINGAPORE/HONG KONG, July 17 (Fitch) Fitch Ratings says in a new report that it expects market consolidation to continue in Malaysia's insurance market, following the M&A deals in 1H14. Regulatory changes in 2013 could prompt smaller scale insurers that are facing pressure on capital to exit or merge with larger rivals in the short to medium term. However, the overall industry's capital strength is likely to remain solid as insurers tend to maintain risk-based capital ratios in excess of their own individual target capital levels. Industry performance is also likely to be stable, driven by favourable underwriting gains from non-motor classes and investment-linked products. Fitch believes the attractive growth prospects in Malaysia's insurance industry will continue to spur acquisitions by foreign investors. The conventional and takaful sectors are expected to grow steadily as the level of private consumption and consumer risk appetite increases. Higher distribution coverage and product offerings by insurers will continue to support these sectors. The 'Malaysia Insurance Market Dashboard 1H14' is available at or by clicking the link above. Contact: Thomas Ng Analyst +65 6796 7224 Fitch Ratings Singapore Pte Ltd 6 Temasek Boulevard #35-05 Suntec Tower Four Singapore 038986 Terrence Wong Director +852 2263 9920 Fitch (Hong Kong) Limited 2801, Tower Two, Lippo Centre 89 Queensway, Hong Kong Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email:; Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: Additional information is available on ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.