VIETNAM’S PETROLIMEX INSURANCE CREDIT RATINGS AFFIRMED - AM BEST

KUALA LUMPUR, Sept 17 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of B++ (Good), the long-term issuer credit rating of “bbb” (Good), and the Vietnam National Scale Rating (NSR) of aaa.VN (Exceptional) for Vietnam’s Petrolimex Insurance Corporation (PJICO).

The outlook of these credit ratings (ratings) is stable, reflecting PJICO’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

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

In a statement, AM Best said the company’s prospective risk-adjusted capitalisation is expected to be supported by good internal capital generation, which takes into account its planned business growth.

Maintaining a prudent investment strategy, with a majority of its investments held in cash and term deposits, PJICO has a moderate reliance on reinsurance to support its underwriting capacity for large property and engineering risks, as well as to manage accumulation risks and catastrophe exposure.

The credit rating agency assesses PJICO’s operating performance as adequate, as evidenced by a five-year (2020-2024) weighted average return-on-equity of 12.6 per cent, with its overall earnings remain driven by a stable stream of investment income.

With a business profile assessed as neutral, PJICO is a non-life insurer based in Vietnam, with gross premiums written of 4.6 trillion Vietnamese dong (US$184 million) in 2024, equating to approximately six per cent of the domestic market share. (US$1=RM4.18)

The company’s premium mix is moderately diversified, with its key business lines being motor, accident and health, property and marine cargo. In addition, it has a vast distribution network, including agency and direct channels.

-- BERNAMA