Malayan Insurance remains strong, stable — CEO
The year 2023 marked Malayan’s 54th year as the biggest Philippine non-life insurance company in terms of gross premiums written, based on Insurance Commission reports.
Daily TribuneThe year 2023 marked Malayan’s 54th year as the biggest Philippine non-life insurance company in terms of gross premiums written, based on Insurance Commission reports.
The country's largest insurance company, Malayan Insurance Co. Inc., maintained that amid the challenging global market climate, the company remains strong and stable.
In a statement on Friday, Malayan Insurance president and CEO Paolo Abaya said 2023 for the insurance industry was filled with various challenges, namely rising inflation, ongoing geo-political issues, and the Philippines' vulnerability to natural disasters which have contributed to increasing non-life insurance premiums as well as reinsurance rates.
Getting more expensive
"With global reinsurance pricing continuing to rise, insurance is getting more expensive and is affecting our property insurance business," Abaya states.
PIRA (Philippine Insurers and Reinsurers Association) has earlier explained the reason behind the increased reinsurance rates.
"Reinsurers, like insurers, are subject to the same perils such as fire, natural calamities, and as recently demonstrated, pandemics. Reinsurers (and insurers) are also not immune to inflation which impacts their operational costs and efficiencies. Simply put, the more losses they sustain, the higher premiums they will charge in the following period of cover. Just like any business they (and insurers also) need to recover from their losses," PIRA chairperson Eden Tesoro explains.
She stressed that it is because of these challenges that many non-life insurance players are strengthening the retail aspect of the business making the scene more competitive.
Abaya says there should be a sustainable way to deal with the increased rates of reinsurance, which primarily affects large corporate accounts.
Expanding its retail business
This is the reason, according to Abaya, that Malayan has been expanding its retail business which is less reliant on reinsurance.
Worth noting is how Malayan's overall earnings on motor insurance products, one of Malayan's core retail lines, and investment income are seen as major contributors to the company's strong performance.
"We want to grow the other areas of our business like the motor, even as we try to manage our property portfolio. As mentioned earlier, the reinsurance cost has become so expensive that it takes a huge balancing act to charge risk-adequate but competitive premium rates and keep the property business sustainable," he said.
Under Abaya's helm, Malayan Insurance continues to soar and keep its legacy of being on top of the non-life category.
Financial Strength rating
Malayan also recently retained its B++ Financial Strength rating and received a long-term issuer credit rating of "bbb" (good) from the international credit rating agency AM Best, a global authority for rating insurance companies.
The ratings reflect the company's stability of financial position, business profile, operating performance and enterprise risk management, among others.
Abaya said the company has been consistently receiving favorable ratings for the past eight years.
Apart from its assets and net worth which are among the highest in the industry, Malayan Insurance takes pride in providing quality service to its clients.
"Malayan is committed to being a reliable company in paying valid claims on time—which is the key consideration of policyholders in choosing an insurance provider. It strives to respond to the evolving needs and preferences of clients. Aside from providing comprehensive and properly designed insurance policies, Malayan also focuses on providing better customer experience at any point of a policyholder's journey," he added.
New innovative products
This year, Malayan Insurance is set to launch and announce several new, innovative products to serve clients' evolving needs.
Malayan Insurance's 94 years in the insurance business serve as a testament to its commitment in protecting in terms of quality insurance products and timely payment of claims to the insuring public.
The year 2023 also marked Malayan's 54th year as the biggest Philippine non-life insurance company in terms of gross premiums written, based on the Insurance Commission reports.
The impressive track record of Malayan, backed by the Yuchengco Group of Companies conglomerate, keeps Malayan's operations as strong as ever even in the face of the challenging environment.
