Malaysian Re eyes global expansion plan

Malaysian Re is setting its sights on global expansion, with ambitious plans to become one of the “top 50” reinsurers globally, its president and chief executive Ahmad Noor Azhari Abdul Manaf shared with EAIC Today.

The company has designed a six-year strategic plan, ending in 2030, which focuses on expanding into new markets, including Europe, Japan, and Australia, while maintaining a strong foothold in Southeast Asia.

In light of its plans, Manaf emphasised the importance of size in the reinsurance market, noting that “size does matter” in terms of spreading risk and providing greater capacity to clients.

The company’s vision is to solidify its position in the region and to explore opportunities in the Latin American market, although this is likely a few years away, Manaf said.

As part of its expansion, the company will focus on facultative reinsurance and retakaful business to broaden its product offerings and services. Manaf stressed that sustainable profitability will be at the heart of these growth plans. 

“The key for us is to ensure sustainable profit over the next four to five years, and even beyond that,” he stated.

“People are thinking about the bottom line, not just the top line, which is good news.”

More profitability

Reflecting on the broader reinsurance market in Southeast Asia, Manaf described 2023 as a relatively stable year. “We have not seen any major events on the catastrophe side or the risk side, which has given the market a breather,” he said. This, coupled with a “hardened” market, has led to a more disciplined environment with “less competition and a stronger focus on profitability rather than market share”. 

“People are thinking about the bottom line, not just the top line, which is good news for everyone in the long run,” Manaf said, highlighting the role of the regulators of the Association of Southeast Asian Nations (ASEAN, which comprises 11 countries) in fostering market discipline and collaboration across borders.

He believes the region’s economic growth, particularly in countries such as Indonesia, Thailand, Vietnam, and the Philippines, presents ample opportunities for the reinsurance sector. Manaf pointed to increasing foreign interest in ASEAN markets, which has created “a rosy outlook” for the region. He cited ASEAN’s Renewable Energy Pool initiative as a prime example of cross-border collaboration, particularly in supporting the green energy transition.

“The industry must maintain discipline to ensure longevity, and we must consistently provide capacity and expertise to our clients,” he concluded.

For more news from the East Asian Insurance Congress conference (EAIC) click here.

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