Muristek
KUALA LUMPUR, March 15 — MNRB Holdings Bhd (MNRB) wholly-owned subsidiary, Malaysian Reinsurance Bhd (Malaysian Re), has issued a RM50 million subordinated medium term notes (MTN) under its RM250 million Subordinated MTN Programme.
The issuance was fully subscribed by MNRB.
MNRB said Malaysian Re had established a Subordinated MTN Programme for the issuance of up to RM250 million in September 2013 of which, RM1 million was issued on Sept 1, 2015.
“This latest issuance of RM50 million represents a drawdown from this programme. Proceeds from the issuance will be used to strengthen its (Malaysian Re) capital in view of the substantial growth of its gross premium during last nine months,” it said in a statement today.
It said the stronger capital would also support Malaysian Re’s business remodelling plan, a strategic transformation programme to transform Malaysian Re’s business portfolio over the next few years.
“As Malaysian Re has accelerated some of the initiatives under its remodelling plan, the company is undertaking a proactive measure to ensure adequate capital to support the acceleration,” it said.
MNRB president and group chief executive officer Zaharudin Daud said the remodelling plan is in line with the group’s transformation journey.
“We believe that this effort will further contribute to the group’s profitability moving forward.
“The added capital from this issuance will enable Malaysian Re to push further into profitable lines and territories, rebalance its underwriting portfolio and enjoy the diversification benefits from remodelling the portfolio,” he said.
The subordinated MTN issued by Malaysian Re qualifies as a Tier 2 capital instrument in compliance with the requirements of the Risk-Based Capital Framework for Insurers issued by Bank Negara Malaysia (BNM). — Bernama