KUALA LUMPUR, March 29 (Bernama) -- Global credit rating agency AM Best has affirmed Vietnam’s PVI Insurance Corporation (PVI Insurance) financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent).
According to AM Best in a statement, these credit ratings (ratings) have a stable outlook and PVI Insurance has been assigned the Vietnam National Scale Rating (NSR) of aaa.VN (Exceptional) with a stable outlook.
The ratings reflect PVI Insurance’s balance sheet strength, which the rating agency assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The ratings also factor in rating enhancement from PVI Insurance’s ultimate parent, HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G.).
AM Best assesses PVI Insurance’s operating performance as strong, supported by its five-year average return-on-equity ratio of 17.9 per cent (2019-2023) and the company continued to deliver robust underwriting profits in 2023 and achieved a combined ratio of 92.7 per cent.
Underwriting performance is expected to remain robust over the medium term supported by profitable results in commercial and industrial lines of business, with investment returns, consisting mainly of interest and dividend income, is expected to remain as a key contributor to the company’s overall earnings.
Meanwhile, PVI Insurance’s business profile was assessed as neutral, in which the company became the largest non-life insurer in Vietnam based on 2022 direct premiums and it continues to grow its market share.
The company has a strong market position in commercial and industrial lines of business, including energy, property, engineering, aviation and marine insurance, as supported by its affiliation with the PetroVietnam group, one of the largest state-owned oil and gas corporations in Vietnam.
Support from HDI V.a.G. has enhanced PVI Insurance's technical expertise and service offerings, strengthening its position in the regional industrial risks insurance segment. The company benefits from risk management and governance support from HDI V.a.G.
-- BERNAMA
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