Wednesday, 29 January 2020

AM Best assigns stable ratings outlook to Vietnam's PTI

KUALA LUMPUR, Jan 29 -- AM Best has assigned a Financial Strength Rating of B++ (good) and a Long-Term Issuer Credit Rating of ‘bbb’ to Post-Telecommunication Joint Stock Insurance Corporation (PTI) Vietnam.

According to a statement by the global credit rating agency, the outlook assigned to these ratings is stable.

The ratings reflect PTI’s balance sheet strength, which AM Best categorised as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

AM Best notes that PTI benefits from various forms of support from its largest single shareholder, DB Insurance Co Ltd.

PTI’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation that is projected to be at least at the very strong level over the medium term, as measured by Best’s Capital Adequacy Ratio.

AM Best also views the company’s investment portfolio to be of moderate risk, characterised by exposures to investments in subsidiaries, affiliates, equities and unrated bonds, notwithstanding that the majority of these are allocated to term deposits.

The company has maintained consistent underwriting profitability on the back of an increasing market share despite competitive market conditions in Vietnam, reflecting its prudent underwriting, risk selection and claims control.

More details at www.ambest.com

-- BERNAMA

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