AM BEST AFFIRMS CREDIT RATINGS OF VIETNAM'S PETROLIMEX INSURANCE

KUALA LUMPUR, Nov 17 (Bernama) -- Global credit rating agency AM Best has affirmed Vietnam's Petrolimex Insurance Corporation (PJICO) financial strength rating of "B++" (good) and long-term issuer credit rating of “bbb” (good).

The credit ratings reflect PJICO’s strong balance sheet strength, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

In a statement, AM Best said PJICO’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which is expected to remain at the strongest level over the medium term.

The company’s balance sheet strength assessment is supported by the stability of its capital adequacy and moderate net underwriting leverage.

It had also maintained a generally conservative investment strategy, with the majority of investments held in cash and term deposits.

AM Best assessed PJICO’s operating performance as adequate, as evidenced by a five-year average combined ratio of 97.7 per cent and return-on-equity ratio of 12.2 per cent (2017-2021).

“PJICO’s underwriting performance improved in 2021 compared with the previous year, driven in part by lower claims experience -- given COVID-19-related mobility restriction measures in Vietnam -- and higher net earned premiums from premiums reserve release," it said.

AM Best views PJICO’s business profile as neutral, noting that in 2021, PJICO ranked as the fifth-largest non-life insurer in Vietnam, with a market share of approximately six per cent of gross premium written.

“The company’s business profile benefits from its common branding and preferential access to cargo business arising from its largest non-majority shareholder, Vietnam National Petroleum Group (Petrolimex)," it added.

-- BERNAMA