...Solid Capitalisation Supports Outlook: Fitch Ratings believes that the Malaysian insurance sector's well-sustained capitalisation will underpin the insurers' credit profiles. It will support their premium expansion and potential underwriting volatility as economic growth moderates. The agency attributes this to the robust regulatory framework and capital practices required by the regulator. The industry's capitalisation measured by the consolidated risk-based capital (RBC) ratio was strong at 239% in 1H15, well above the regulatory minimum of 130%. Life Sector Drives Penetration: Fitch expects the premium growth for life and family takaful to remain stable overall. The life penetration rate measured by Swiss Re Sigma was 3.1% in 2014 and nearly double that of non-life at 1.7%. Growing consumer risk appetite will continue to drive the dominant demand for investment-linked plans (ILPs) amid low interest rates. We believe that the health-related and retirement insurance segments will grow...
