A.M.Best Affirms PVI Re’s credit rating

Singapore, 23 February 2023
A.M.Best affirms PVI Re’s financial strength rating at B++ (Good) and the long-term credit rating of the issuing organization at bbb. The outlook for the financial strength and credit capacity of the corporation is stable.

This affirmation marks the third consecutive year that A.M.Best has rated PVI Re’s credit at B++, demonstrating A.M.Best’s high regard for PVI Re, especially in the context of challenges faced by the insurance/reinsurance market in recent years due to the pandemic, political conflicts, global recession risks, and significant natural disasters affecting insurance/reinsurance companies worldwide. In fact, many insurance/reinsurance companies worldwide have had their credit ratings downgraded during this period. This indicates A.M.Best’s remarkably high evaluation of PVI Re’s financial strength, reflecting the outstanding performance, stable business operations, and appropriate enterprise risk management of PVI Re.

PVI Re’s financial capability, reflected through risk-adjusted capitalization and measured by the Best’s Capital Adequacy Ratio (BCAR), is maintained at a steady level, especially after completing the increase in charter capital (expected in the first quarter of 2023).

PVI Re has consistently achieved outstanding financial performance over the years, reflected in the return on equity (ROE) reaching an average of 16% over 5 years (2017 – 2021). Particularly in 2022, with the highest premium revenue since its establishment, PVI Re became the leading local reinsurer in the domestic market. The average return on equity reached 16.8%.

In addition, the corporate governance and Enterprise Risk Management (ERM) activities of PVI Re are regarded as appropriate for the scale and complexity of the business operations. With the support of HDI V.a.G and professional consulting firms, PVI Re has implemented a multi-year ERM project since 2020, aimed at adjusting risk management and compliance control activities to meet international standards.
PVI Re is anticipated to gain more advantages from major shareholder HDI V.a.G in the future, including access to its professional expertise in global reinsurance products, insurance pricing, and risk provisions, as well as the application of international standard system for enterprise risk monitoring and management.

In the coming time, it is expected that PVI Re will further leverage the benefits from its major shareholder HDI V.a.G, especially in expertise for overseas reinsurance products, insurance valuation and risk provisioning, and international standards for enterprise risk monitoring and management.

A.M.Best is a leading global rating organization in the insurance and reinsurance industry. Established in 1899, A.M.Best has rated the credit of over 3500 organizations in more than 90 countries worldwide. A.M.Best’s B++ rating is equivalent to BBB+ credit rating by Standard & Poor’s (S&P) – assessing the company’s solid financial ability to meet current insurance obligations. Having a good rating is enormously important for the business operations of a reinsurance company.