KUALA LUMPUR: MNRB Holdings Bhd
expects to complete its acquisition of Labuan Reinsurance (L) Ltd (Labuan Re) by the fourth quarter of 2026.
The group is acquiring the remaining 80 per cent stake for a total cash consideration of US$100.69 million (RM400.9 million), positioning it to accelerate its expansion into the international and offshore insurance sector.
Its interim president and group chief executive officer, Rudy Rodzila Che Lamin, said several requirements must be fulfilled before the exercise can be completed, including obtaining regulatory approval from Bank Negara Malaysia and shareholder approval.
The group said the acquisition is a strategic move that complements its domestic operations, noting that both entities are locally owned companies.
"After completing the acquisition, we plan to expand into several markets, including the facultative business, specialty and structured solutions businesses, as well as Malaysian Reinsurance Bhd (Malaysian Re)'s existing business segments," he said at a media briefing on the group's financial results for the financial year 2026 and corporate updates.
MNRB currently holds a 20 per cent indirect interest in Labuan Re through its wholly owned subsidiary, Malaysian Re. Upon completion of the acquisition, Labuan Re will become a wholly owned subsidiary of the group.
Rudy Rodzila said Malaysian Re's financial results are strong, but MNRB aims to take the next step in its transformation.
"We believe that the same portfolio and business we plan to underwrite in Malaysian Re will also be underwritten through Labuan's platform. In short, we are consolidating," he added.
He said MNRB aims to become one of the largest players in Asia as a national company, noting that it is already among the largest in terms of assets in Southeast Asia, and is targeting a position in the top five in Asia moving forward.
Both entities will continue to operate concurrently, given their respective specialisations and complementary roles.
From a capital perspective, he said Labuan Re offers greater liquidity and lower capital charges, as well as the benefit of the tax structure of an offshore company, which allows MNRB to expand into the global market.
Commenting on the current West Asia conflict, Rudy Rodzila said MNRB is managing the situation but has limited exposure, as the impact is mainly seen in the marine and cargo business.
"Going in and out, so we don't really have big exposure. The second reason is that it is war. Normally, we do not cover war. It is quite a standard rule globally that we do not cover acts of war," he said.
Meanwhile, its executive vice president and group chief financial officer, Sharmini Perampalam, said the group is less affected from an insurance perspective but more exposed to broader industry and economic impacts.
"When it comes to impact, we don't mean so much from the insurance side. We mean more from the industry and economic impact. If the war continues, there will be wider economic effects, and usually insurance or takaful is the first to be affected in that kind of environment," she said.
On the strengthening ringgit, Sharmini said it is not entirely positive for the group, as about 50 per cent of its business involves foreign currency investments, although MNRB actively hedges its exposure.
"We hedge that exposure and have a hedging policy to ensure it is as close to 100 per cent as possible. It can never be a perfect hedge, but we try to maintain it as effectively as possible," she added. - Bernama
