February 2023—AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb+” (Good) of PVI Insurance Corporation (PVI Insurance). 
The ratings reflect PVI Insurance’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also factor in rating enhancement from PVI’s ultimate parent, HDI.

The rating upgrades reflect the company’s consistently favourable underwriting performance and outstanding overall profitability. Robust underwriting performance is supported by profitable commercial and industrial businesses. PVI Insurance has reported consistent technical profitability and a five-year average return- on-equity ratio of 17% (2017-2021). The company reported strong premium growth (17%) in 2022. AM Best expects PVI Insurance will continue to maintain its underwriting profitability with a net combined ratio at approximately the low-90% range over the medium term. Investment returns, arising mainly from interest and dividend income, have been consistently supportive of operating earnings.
PVI Insurance’s risk-adjusted capitalisation is expected to decrease, albeit remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR). The decline is mainly due to insurance business growth, higher investment exposure and a high dividend payout ratio. The company has a moderate risk investment portfolio, with an increasing allocation to non-rated corporate bonds and affiliated private equity investments, although a majority of investments remain allocated to cash and term deposits. Key offsetting factors include its high reinsurance dependence.
PVI Insurance has a strong market position in commercial and industrial lines of business, including energy, property, engineering, aviation and marine insurance, supported by its affiliation with the PetroVietnam (PVN) group, one of the largest state-owned oil and gas corporations in Vietnam. The company also receives support from HDI V.a.G. to enhance its technical expertise and service offerings. 
AM Best considers the company’s ERM approach as appropriate given the size and complexity of its current operations. PVI Insurance benefits from risk management and governance support from HDI V.a.G…