Malaysia’s growing insurance industry to drive M&A

April 21 2015 by InsuranceAsia News Staff

A report released by Fitch ratings on 20 April said that the attractive growth prospects in Malaysia’s insurance industry are expected to boost the levels of merger and acquisition (M&A) activity in the country in the near term.

In the report, Fitch said the capital strength of Malaysia’s insurance industry measured by risk-based capital ratio was strong at 253% last year despite regulatory hurdles.

M&A activity, Fitch said, would be boosted as Malaysia’s under-capitalized insurers and takaful operators could be expected to seek strategic investors or alternative capital to meet their capital needs amidst intensified market competition.

The local insurance industry will also become attractive to investors, as the ongoing regulatory developments will enhance the sector’s global competitiveness as it transitions into a liberalized market.

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