VIETNAM’S PVI INSURANCE RATED EXCEPTIONAL - AM BEST

KUALA LUMPUR, March 21 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A- (Excellent), the long-term issuer credit rating of “a-” (Excellent) and the Vietnam National Scale Rating (NSR) of aaa.VN (Exceptional) of PVI Insurance Corporation (PVI Insurance), with a stable outlook.

In a statement, AM Best said the ratings reflected PVI Insurance’s strong balance sheet, robust operating performance, neutral business profile, and sound enterprise risk management.

The assessment also incorporates rating enhancement from its parent company, HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G.).

PVI Insurance’s balance sheet strength is supported by its risk-adjusted capitalisation, measured by Best’s Capital Adequacy Ratio, which is expected to remain at the strongest level over the medium term. The company also benefits from good financial flexibility due to HDI V.a.G.'s majority ownership.

Despite high dividend payouts and reinsurance dependency, AM Best considers PVI Insurance’s investment portfolio to be of moderate risk, with allocations in cash, term deposits, corporate bonds, private equity, and real estate.

The credit rating agency noted that PVI Insurance maintains strong operating performance, with a five-year average return-on-equity (ROE) ratio of 17.1 per cent (2020-2024). Although underwriting results were impacted by Typhoon Yagi, the company recorded a 14 per cent ROE in 2024, supported by profitable commercial and retail business lines.

As Vietnam’s largest non-life insurer based on 2023 direct premiums, the company continues to expand its market share, particularly in industrial and commercial insurance segments, benefitting from its affiliation with the PetroVietnam (PVN) group. HDI V.a.G.’s support has further strengthened its technical expertise and regional market position.

PVI Insurance’s business expansion in inward reinsurance has contributed to growth, though prudent risk accumulation remains a focus for monitoring.

-- BERNAMA