AM BEST AFFIRMS THE CREDIT RATING OF HANOI RE

Singapore, March 20^th 2025, Hanoi Reinsurance Joint Stock Corporation (Hanoi Re) has been affirmed by AM Best to having the Financial Strength Rating (FSR) of B++ (Good), Long-Term Issuer Credit Rating (Long-Term ICR) of bbb (Good) and Vietnam National Scale Rating of aaa.VN (Exceptional), which is the highest level in Vietnamese market. The outlook of FSR and NSR is stable while Long-term ICR is positive.  

According to the rating of AM Best, Hanoi Re continues to maintain a strong balance sheet strength, of which, the risk-adjusted capitalisation measured by Best’s Capital Adequacy Ratio (BCAR) was at the strongest level at year-end 2024 and it is expected to remain at this level over the medium term. The capital adequacy showed a material improvement following the capital injection in 2023, which helps strengthening the balance sheet strength and promoting the company sustainable business development.

The operating performance of Hanoi Re is assessed as strong, supported by the high and stable average Return on Equity (ROE) in the 2020-2024 period. Despite the volatile insurance market in 2024 driven by the Typhoon Yagi losses, the company successfully achieved its plan in term of revenue and profit, supported by flexible business strategies, sustainable financial accumulation foundation and effective investment activities. In the near future, the company will continue to optimize its cost and improve the operation efficiency to maintain the growth.

Besides, AM Best also assesses the Enterprise Risk Management (ERM) framework of Hanoi Re to be appropriate. The company has implemented various risk management solutions and optimized the reinsurance activities to enhance the financial protection ability against the risk of natural disasters. The positive outlook for Long-Term ICR reflects the sustainable development trend of Hanoi Re in the recent years. AM Best expects that the company’s balance sheet strength will remain at the strong level and the company will continue to generate robust operating earnings while executing the business plan. This credit rating affirmation is the testament to Hanoi Re’s continuous efforts in strengthening its market position, enhancing service quality, and delivering optimal value to partners and clients.