RAM Ratings has upgraded the LECA rating of Polisea Labuan Ltd, the reinsurance subsidiary of PolicyStreet, to “a+”.
The upgrade places the entity at the higher end of the “a” category, indicating an adequate capacity to meet policyholder obligations and financial commitments.
The rating action reflects improved business traction and sustained profitability in a niche segment focused on high frequency, low severity risks.
The rating remains within the “a” category, reflecting the company’s gestation phase and the potential for higher claims and reserving requirements as underwriting activity expands.
Polisea Labuan is a licensed general (re)insurer in Labuan International Business and Financial Centre and provides coverage for niche risks within the PolicyStreet group’s insurance ecosystem, spanning brokerage, advisory, insurtech infrastructure, underwriting and operations support.
Healthy claims performance has accompanied an expanding partnership network across e-commerce platforms, travel services, foreign worker recruitment and a major telecommunications provider in Malaysia.
Insurance revenue rose to US$1.81 million in the financial year ended 2024 from US$0.30 million a year earlier, while pre-tax profit increased to US$0.98 million from US$0.13 million.
RAM Ratings expects performance to be sustained in the 2025 financial year as the full-year impact of recent distribution partnerships is recognised.
Liquidity and capital levels remain strong and provide buffers against fluctuations in underwriting performance.
The rating also factors in risks from new business lines, including foreign worker medical insurance and motor insurance in Vietnam, as well as facultative risk retention for fire policies of a Vietnamese automotive manufacturer.
LECA is an assessment service by RAM Rating Services Berhad for companies based in Labuan International Business and Financial Centre.
The LECA report can be obtained from the rated entity. LECA ratings are typically valid for up to one year and may be revised if material information or developments arise.
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