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Business Wire
5 days ago
- Business
- Business Wire
AM Best Assigns Credit Ratings to Bao Viet Insurance Corporation
SINGAPORE--(BUSINESS WIRE)-- AM Best has assigned a Financial Strength Rating of B++ (Good), a Long-Term Issuer Credit Rating of 'bbb+' (Good) and the Vietnam National Scale Rating (NSR) of (Exceptional) to Bao Viet Insurance Corporation (BVGI) (Vietnam). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect BVGI's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in rating enhancement from BVGI's parent, Bao Viet Holdings (BVH), a major finance and insurance group in Vietnam. AM Best assesses BVGI's balance sheet strength as very strong, underpinned by its risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level over the medium term. In addition, AM Best views the company as having good financial flexibility, as demonstrated by historical capital injections from BVH. In addition, BVGI has a moderate-risk investment portfolio, with the majority of the company's investments allocated to cash, term deposits and bonds and the remainder held in equity investments and real estate. The company has a moderate reinsurance reliance to support its underwriting capacity and manage catastrophe exposure, although its exposure to credit risk is mitigated partially by the high credit quality of its reinsurance panel. AM Best assesses BVGI's operating performance as adequate, with a five-year average return-on-equity ratio of 9% (fiscal years 2020-2024). In 2024, the company delivered robust operating results with a return-on-equity ratio of 11.8% despite the impact of Typhoon Yagi. The company's prospective underwriting performance is expected to be supported by prudent underwriting and pricing discipline. Furthermore, the company's stable investment income, which comprises mainly interest and dividend income, also is supportive of overall profitability. AM Best assesses BVGI's business profile as neutral. BVGI is the second-largest non-life insurer in Vietnam, with a market share of 13% based on direct premiums written in 2024. BVGI's underwriting portfolio is diversified moderately by line of business, with health and personal accident and motor vehicle insurance being the key lines. Also, the company distributes its products mainly through agencies and brokers. BVGI's ratings incorporate rating enhancement from its ownership and integration with BVH. The company benefits from group-wide corporate governance, as well as access to shared resources and services across various business functions. Although BVGI's operations account for a small portion of the group's consolidated revenue, the company is considered strategically important to the group. Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Barnama
22-07-2025
- Business
- Barnama
AM Best Assigns Stable Outlook To Vietnam's Military Insurance Corporation
BUSINESS 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 (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
Barnama
21-07-2025
- Business
- Barnama
AM Best Assigns Credit Ratings to Military Insurance Corporation
SINGAPORE, July 21 (Bernama) -- 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 (Exceptional) to Military Insurance Corporation (MIC) (Vietnam). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect 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. The ratings also factor in a neutral impact from the company's ultimate parent, Military Commercial Joint Stock Bank (MB).
