AM Best Revises Issuer Credit Rating Outlook to Positive and Assigns National Scale Rating to Hanoi Reinsurance Joint Stock Corporation

AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” (Good) of Hanoi Reinsurance Joint Stock Corporation (Hanoi Re) – formerly known as PVI Reinsurance Joint Stock Corporation (PVI Re) (Vietnam). The outlook of the FSR is stable. In particular, in 2023, AM Best adds a National Scale Rating – NSR applicable to each country’s market, converted from the rating results according to international standards. Accordingly, Hanoi Re’s 2023 NSR is aaa.VN, the highest level in Vietnam with a stable outlook.

In the context that Vietnam’s economy is on the path to recovery and the insurance industry still faces many challenges, ICR outlook of Hanoi Re being upgraded to Positive is a good signal about the company’s development potential in the future. This is also an important step towards increasing the company’s credit rating.

The revised Long-Term ICR outlook reflects an improving trend in Hanoi Re’s balance sheet strength fundamentals. Correspondingly, the company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), improved to the strongest level in fiscal-year 2023, especially after the company successfully increases its charter capital. With enhanced financial potential, Hanoi Re has achieved business results with record high pre-tax profits since its establishment. According to the 2023 financial report just announced by Hanoi Re, pre-tax profit reached 256 billion, an increase of 35% compared to 2022.

In addition, A.M Best also assessed that Hanoi Re’s risk management system is suitable for the company’s current operations. In the context of domestic and foreign markets facing many difficulties, Hanoi Re is clearly aware of the importance of assessing and controlling risks from the early stages and setting goals for sustainable growth.

Mr. Trinh Anh Tuan, CEO of Hanoi Re shared: “We are delighted to receive a positive decision from A.M. Best, this is recognition for Hanoi Re’s efforts and commitment over the past time. We will continue to innovate and improve service quality, increase operational efficiency to upgrade our credit rating as soon as possible.”

In the coming time, Hanoi Re is expected to take advantage of more benefits from major shareholder HDI V.a.G, in terms of professional expertise in international reinsurance products, insurance pricing and risk management , an international standard ERM system.