Malaysia insurers earn $0.3b despite marine premium decline

Personal Accident premiums climbed 12.2% as travel demand strengthened.

Malaysia’s general insurance industry recorded an underwriting profit of $0.3b (RM1.2b) in 2025, with a combined ratio of about 93%.

Marine, Aviation and Transit insurance gross written premiums fell by 2.2% to $0.4b (RM1.79b), from $0.4b (RM1.83b) in 2024.

The decline was mainly due to slower performance in the offshore oil-related and cargo segments.

Offshore oil-related business accounted for 37.6% of the Marine, Aviation and Transit portfolio, whilst cargo business contributed 33.9%.

The segment recorded an underwriting profit of $26.0m (RM108.1m) in 2025, down from $38.8m (RM161.8m) in the previous year.

Its combined ratio stood at 73.1%. Cargo and marine hull business accounted for 89.6% of the segment.

Personal Accident insurance, meanwhile, recorded double-digit growth. Gross written premiums increased by 12.2% to $0.4b (RM1.6b), compared with $0.3b (RM1.4b) in 2024.

The increase was mainly driven by higher demand for travel insurance as travel activity continued to recover. Greater use of digital distribution channels and the broader economic recovery also supported premium growth.

Travel patterns showed that consumers were increasingly choosing destinations where the Ringgit had stronger purchasing power.

Insurers are expected to maintain their focus on underwriting discipline, operational efficiency and product development. Key areas include electric vehicle coverage, climate risk solutions and digital distribution channels.