Petrolimex Insurance Corporation outlooks revised to positive - AM Best

KUALA LUMPUR, Oct 16 -- AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of ‘bbb-’ of Petrolimex Insurance Corporation (PJICO) Vietnam.

These Credit Ratings reflect PJICO’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

According to a statement, the revised outlooks reflect improvement in the company’s balance sheet strength fundamentals over recent years.

Prospectively, AM Best expects the company’s risk-adjusted capitalisation to remain at the strongest level, as measured by Best’s Capital Adequacy Ratio.

In addition, capital adequacy is expected to exhibit reduced volatility over the medium term as a result of growth in the absolute size of the company’s capital base, underpinned by robust retained earnings.

PJICO’s balance sheet strength assessment also factors in the company’s generally conservative investment strategy with approximately 75 per cent of investments held in cash and term deposits.

AM Best assesses the company’s operating performance as adequate. PJICO reported a five-year average combined ratio of 98.6 per cent and return-on-equity ratio of 11.1 per cent (2015-2019).

The global credit rating agency views PJICO’s business profile as neutral. In 2019, the company ranked as the fifth largest non-life insurer in Vietnam with a market share of approximately six per cent, based on gross premiums written.

-- BERNAMA