Monday, November 20, 2017

Labuan records US$1.4bn rise in premiums

The insurance industry at the Labuan International Business and Financial Centre in Malaysia recorded solid growth for 2016 in terms of gross written premiums.

According to Bank Negara Malaysia, the country’s central bank, Labuan’s insurance and reinsurance businesses posted a 3.3% rise in gross written premiums to US$1.4 billion.

Central bank governor Muhammad Ibrahim said the industry managed to post growth by successfully shifting focus from engineering and marine classes that correlate to oil price developments, to other specialised lines.

Last year also saw the highest underwriting margin since 2012 due to higher earned premiums written and lower claims during the year, Ibrahim said.

Overall, the insurance sector in Labuan remained strong and sound, with profit before tax growing significantly by 54.2% to US$387 million.

The margin of solvency was also more than six times above the minimum regulatory requirement.

 

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Zainudin Ishak, Malaysian Re

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