General insurers' underwriting profit jumps 32% in 1H on strong premium growth

MALAYSIA’S general insurance industry saw its underwriting profit surge 32% year-on-year (y-o-y) to RM629 million in the first half of 2025, driven by higher premiums and improved underwriting discipline, according to the General Insurance Association of Malaysia (PIAM).

This was up from RM476 million in the same period last year, as the industry’s gross written premiums rose 4% y-o-y to RM12.3 billion in the January–June period.

PIAM attributed the stronger performance to better cost efficiency and underwriting management but cautioned that the industry continues to face headwinds from geopolitical uncertainties, US tariffs, climate risks, the shift towards electric vehicles (EVs) and inflationary pressures.

Motor insurance remained the largest segment, contributing RM5.3 billion in premiums — up 5.7% y-o-y — though it posted an underwriting loss with a combined ratio of 102.2% due to higher claims frequency and rising spare parts costs.

Fire insurance recorded a 10.4% increase in premiums to RM2.6 billion, supported by demand for property and commercial coverage, while maintaining a healthy underwriting margin of RM363 million and a combined ratio of 67.3%.

Personal accident insurance rose 11.2% to RM800 million, mainly on stronger travel-related policy sales.

Meanwhile, the contractor’s all risk and engineering segment saw premiums decline 13.1% to RM600 million but remained profitable with an underwriting gain of RM58 million.

Marine, aviation and transit insurance premiums fell 8.6% to RM1.15 billion, though the segment stayed profitable with a combined ratio of 63.2%.

PIAM said insurers will continue to focus on sustainable underwriting and operational efficiency while expanding offerings related to EV coverage, climate risk and digital distribution.