Vietnam’s non-life insurance market: A new step toward financial transparency and risk governance

Within the span of one week, AM Best consecutively announced its first-time credit ratings of B++ (Good) for Military Insurance Corporation – MIC (July 18, 2025) and Bảo Việt Insurance – BVGI (July 24, 2025). These back-to-back events raise the total number of non-life companies/branches in Vietnam with public ratings to 11, allocated as follows:

• 1 A++ (Superior) – a branch of an international group;

• 1 A  (Excellent) – PVI Insurance, reaffirmed by AM Best on March 20, 2025;

• 9 B++ (Good) – including Hanoi Re, MIC, BVGI, and six other companies.

Before 2010, no non-life insurance company in Vietnam had obtained a credit rating. The rapid increase in the number of rated companies over the past 15 years reflects three main market trends:

1. Alignment with international standards
Standards such as Best’s Capital Adequacy Ratio (BCAR), enterprise risk management (ERM), and financial transparency are increasingly considered mandatory—not only to attract reinsurance but also to comply with the Ministry of Finance's roadmap for implementing RBC and IFRS 17.

2. Increased confidence from clients and investors
Independent ratings provide an objective view of financial health, helping clients choose reliable insurers and enabling international investors to accurately assess the risk appetite of Vietnamese companies.

3. Enabling the development of specialized products
With capital and governance structures assessed, companies can retain higher levels of risk and engage more deeply with global reinsurers to offer complex products such as renewable energy assets, infrastructure, and agricultural insurance.

Hanoi Re in the new landscape

AM Best reaffirmed Hanoi Re’s B++ (Good) rating on March 20, 2025, while maintaining a Positive outlook for its Long-term Issuer Credit Rating. This indicates:

• Strong capital base: The BCAR remains at the “Strong” level, supporting risk retention capacity;
• Stable business results: Improved underwriting margin through prudent risk selection and high-quality reinsurance programs;
• Risk management and compliance: Early adoption of IFRS 17, a three-lines-of-defense model, and the use of technology (AI, OCR) to optimize processes.

For clients, the B++ rating with a positive outlook affirms Hanoi Re’s commitment to timely claim settlement capability and support for large-scale insurance programs—especially in the energy, marine, and engineering sectors.

For shareholders, the rating reinforces the company’s medium-term goal of upgrading to “Excellent,” thereby expanding growth potential and sustaining profit margins. Hanoi Re continues to prioritize:

• Strengthening capital through retained earnings and strategic cooperation with foreign investors;
• Diversifying its portfolio by targeting high-margin commercial lines;
• Investing in technology to enhance operational efficiency and data transparency in line with international reporting standards.