AM Best Assigns Stable Outlook To Vietnam's Military Insurance Corporation
KUALA LUMPUR, July 22 (Bernama) -- Global credit rating agency, AM Best has assigned a financial strength rating of B++ (Good), a long-term issuer credit rating of 'bbb' (Good) and a Vietnam National Scale Rating (NSR) of aaa.VN (Exceptional) to Military Insurance Corporation (MIC).
The outlook assigned to these credit ratings (ratings) is stable, reflecting Vietnam-based MIC's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
AM Best in a statement said the ratings also factored in a neutral impact from the company's ultimate parent, Military Commercial Joint Stock Bank (MB).
As measured by Best's Capital Adequacy Ratio, MIC's balance sheet strength assessment is underpinned by the strongest level of risk-adjusted capitalisation. It benefits from good financial flexibility, with a demonstrated track record of capital injections over the last 10 years.
The company's track record of robust internal capital generation is also viewed to be supportive of capital requirements arising from planned business growth, in addition to having a conservative investment strategy, with the majority of investments held in cash, term deposits and fixed-income securities.
AM Best considers MIC's operating performance to be satisfactory, with an average return on equity of 11.2 percent over five years and a combined ratio of 98.5 percent from 2020 to 2024, while its steady income from term deposits and bonds plays a key role in its total earnings.
However, the company posted an underwriting loss last year, mainly driven by Typhoon Yagi and other one-off factors, as it also reported a return to underwriting profitability in the first quarter of 2025. Prospective business expansion in wholesale lines is expected to support an improvement in overall results.
Furthermore, the credit rating agency assesses MIC's business profile as neutral. The company ranked fourth by gross premiums written in Vietnam's non-life insurance market, with approximately 6.3 per cent market share in 2024.
-- BERNAMA
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