A.M. Best Affirms Credit Ratings of PVI Reinsurance Joint-stock Corporation

Singapore, 21th August 2020,
has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of PVI Reinsurance Joint-stock Corporation (PVI Re) (Vietnam). The outlook of these Credit Ratings (ratings) is stable

The ratings reflect PVI Re’s balance sheet strength, which AM Best categorizes as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM)

PVI Re’s balance sheet strength assessment is underpinned by risk-adjusted capitalization that remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).

Positive rating actions could result from a higher capital base and a stronger profile in PVI Re’s domestic market.

AM Best views the company’s operating performance as strong, as demonstrated by a five-year average return-on-equity ratio of 16%. While the company has exhibited a high dividend payout ratio over recent years, retained earnings have remained sufficient to support business growth.

AM Best considers the company’s ERM approach as appropriate given the size and complexity of its current operations. Going forward, PVI Re is expected to benefit further from the HDI V.a.G. group’s international product expertise in areas of risk selection, pricing and reserving, as well as its oversight and support in respect of risk management.

A.M.Best is the world’s leading credit rating agency, focusing on insurance and reinsurance industry. Founded in 1899, A.M.Best has issued ratings of more than 3500 organizations in over 90 countries. B++ rated by A.M.Best is equivalent to BBB+ rated by Standard & Poor’s (S&P), which means that the company has a good ability to meet its ongoing insurance obligations.