KUALA LUMPUR, Sept 30 (Bernama) – AM Best has affirmed the Financial Strength Rating of B+ (good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of ‘bbb-’ of Petrolimex Insurance Corporation (PJICO) Vietnam. The outlook of these ratings is stable.
The 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 (ERM).
PJICO’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation that remains at the strongest level, as measured by Best’s Capital Adequacy Ratio. Despite the company having exhibited a moderate dividend payout ratio over recent years, retained earnings over this period along with a capital injection in 2017, have been sufficient to support business expansion.
AM Best views the company’s operating performance as adequate, evidenced by five-year average operating and combined ratios of 91 per cent and 98 per cent, respectively (2014-2018).
Underwriting performance reflects a combination of favourable profitability on cargo and miscellaneous lines of business, typically exhibiting low net loss ratios and good reinsurance commission income.
Overall earnings are supported by a stable stream of investment income, which is generated largely from interest on cash and deposit holdings.
AM Best assesses PIJCO’s business profile as neutral, and considers the company’s ERM approach as appropriate.
AM Best is a global credit rating agency and information provider with exclusive focus on the insurance industry. Visit www.ambest.com for more information.
-- BERNAMA
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