Labuan IBFC Inc. and RAM jointly host event on Labuan captive solutions for self-insurance

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This collaboration arises from RAM’s LECA® rating service for credit and performance evaluation of Labuan IBFC licensees

KUALA LUMPUR, Malaysia, May 16, 2024 /PRNewswire/ — RAM Rating Services Berhad (RAM Ratings), Malaysia’s premier rating agency, and Labuan IBFC Incorporated Sdn Bhd (Labuan IBFC Inc.), the official marketing agency for Labuan International Business and Financial Centre (Labuan IBFC) yesterday hosted an event on self-insurance structures and solutions in Labuan IBFC, Asia’s premier international financial hub. Titled Setting Up a Labuan Captive for Self-Insurance, the event matched delegates from corporates in Malaysia and representatives of the jurisdiction to discover the advantages of captive incorporation in Labuan IBFC.

Datuk Iskandar Mohd Nuli, Executive Chairman cum CEO of Labuan IBFC Inc. and Julie Ng, CEO of RAM Ratings with panellists at the jointly hosted event
Datuk Iskandar Mohd Nuli, Executive Chairman cum CEO of Labuan IBFC Inc. and Julie Ng, CEO of RAM Ratings with panellists at the jointly hosted event

In his welcome address, Datuk Iskandar Mohd Nuli, Executive Chairman cum CEO of Labuan IBFC Inc. highlighted the potential of Labuan captives as an effective and cost-effective risk management tool. “Captive insurance is well-positioned to cater for the changing operating landscape by providing tailor-made insurance policies, while having direct access to the global wholesale reinsurance market to meet non-conventional risks,” Datuk Iskandar elaborated. Labuan IBFC’s captive market began with Malaysian-based corporates, with the market registering USD624.6 million in total gross premiums in 2023, an all-time high premium volume recorded over the last five years. Today, the jurisdiction hosts over 69 captives, underscoring its position as a leading captive hub in the Asian region.

A panel discussion convened experts from event sponsors Brighton Management Limited and Etiqa Offshore Insurance (L) Ltd, and spokespersons from the Labuan International Insurance Association (LIIA) and captive owners. Insightful perspectives on captive suitability and a roadmap for selecting captive options and addressing potential challenges were discussed. RAM Ratings launched its bespoke service (Labuan Entity Corporate Assessment, LECA®) for Labuan IBFC licensees in 2021, which provides ratings for financial institutions, captives and service providers. Stakeholders benefit from the transparency and independent opinion of financial soundness and performance of companies assessed by RAM Ratings.

“This event has been an opportunity to exchange ideas, share knowledge and foster deeper connections between RAM, Labuan IBFC and the stakeholders of the captive community in Labuan IBFC. We hope to contribute to the long-term growth and governance of Labuan IBFC via our ratings which apply RAM’s hallmark of analytical rigour and trusted insights. We look forward to continuing our support of Labuan IBFC via our service offerings,” said Julie Ng, RAM Ratings’ CEO.

The event attracted over 120 delegates in total. For more information on Labuan IBFC captive solutions, visit this link. Click here for frequently-asked questions on LECA®.  

About RAM

Malaysia’s premier credit rating agency

Established in 1990 by Malaysia’s central bank, RAM Ratings is Malaysia’s leading credit rating agency (CRA). As a CRA registered by Securities Commission Malaysia, RAM Ratings has rated over USD450 billion of bonds issued by more than 500 entities based in Malaysia and other countries. Through credit ratings and assessments, we deliver independent insights to support the decision-making needs of investors and market participants in domestic and regional markets.

RAM Ratings, a provider of independent credit and sukuk ratings, is a subsidiary of RAM Holdings Berhad (RAM Group). Apart from credit ratings, the RAM Group also offers myriad solutions ranging from economic and debt market research, data & analytics and sustainability services. We provide country, macroeconomic and fixed-income research in addition to training, risk analytics and solutions for credit risk and other related areas.

RAM is also spearheading green finance and sustainability ratings in the region. In 2016, RAM Ratings joined the line-up of pioneer CRA signatories to the United Nations-supported Principles for Responsible Investment’s Statement on ESG in Credit Ratings. The RAM Group’s ESG initiatives are driven through wholly-owned subsidiary, RAM Sustainability Sdn Bhd – an approved verifier of climate bonds certification in Malaysia, 1st ASEAN observer of the Green Bond and Social Bond Principles, and member of GRI Community in Malaysia. Bond Pricing Agency Malaysia Sdn Bhd (BPAM), the sole provider of bond-pricing and valuation data on the Malaysian bond market is a wholly owned subsidiary of RAM Holdings Berhad.

For more information on the RAM Group of Companies, visit www.ram.com.my or https://analytics.ram.com.my.

About Labuan IBFC

ASIA’S PREMIER INTERNATIONAL FINANCIAL HUB

Labuan International Business and Financial Centre (Labuan IBFC), Malaysia, through its internationally recognised yet business-friendly legal framework, is the preferred international business and financial centre in the Asia Pacific region.

It offers global investors and businesses the benefits of being in a well-regulated jurisdiction, while providing for fiscal neutrality and certainty, in addition to being an ideal location for substance creation.

Labuan IBFC boasts a wide range of business structures and investment solutions catered to cross-border transactions and international business dealings. It offers services and solutions in niches such as asset leasing, risk management, commodity trading, wealth management, international business companies and Islamic financial services to global businesses looking at penetrating Asia and Asian entities aiming to go global.

Labuan IBFC operates within clear and comprehensive legal provisions, guidelines and practice notes, enforced by a single regulator, Labuan Financial Services Authority.

To keep up with everything about Labuan IBFC, follow Twitter or Facebook @LabuanIBFC. Alternatively, visit www.labuanibfc.com

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