KUALA LUMPUR: MNRB Holdings Bhd’s wholly-owned subsidiary, Malaysian Reinsurance Bhd (Malaysian Re) has issued a RM50mil subordinated medium term notes (MTN), under its RM250mil subordinated MTN Programme.

       The issuance was fully subscribed by MNRB.

       It said proceeds from the issuance would be used to strengthen its capital in view of the substantial growth of its gross premium during the last 9 months.

       The stronger capital will also support Malaysian Re’s business remodelling plan, a strategic transformation programme to transform its 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.

       “MNRB fully supports Malaysian Re’s efforts in strengthening its business growth and expansion plans.

       “The remodelling plan is in line with the group’s transformation journey, and we believe that this effort will further contribute to the group’s profitability moving forward,” MNRB president and group chief executive officer Zaharudin Daud said in a statement.

       “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 added.

       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.