PVI INSURANCE’S CREDIT RATINGS UPGRADED TO EXCELLENT - AM BEST

KUALA LUMPUR, Feb 24 (Bernama) -- Global credit rating agency AM Best has upgraded PVI Insurance Corporation’s (PVI Insurance) Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb+” (Good).

According to AM Best in a statement, the outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect PVI Insurance’s balance sheet strength, which AM Best assessed as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management, and also factor in rating enhancement from PVI’s ultimate parent, HDI Haftpflichtverband der Deutschen Industrie V.a.G.

PVI Insurance has reported consistent technical profitability and a five-year average return-on-equity ratio of 17 per cent (2017-2021) and strong premium growth of 17 per cent in 2022.

The rating agency anticipates that PVI Insurance will continue to maintain its underwriting profitability with a net combined ratio at approximately the low-90 per cent range over the medium term.

PVI Insurance’s risk-adjusted capitalisation is expected to decrease, albeit remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio.

The decline is mainly due to insurance business growth, higher investment exposure and a high dividend payout ratio.

PVI Insurance is the second largest insurer in Vietnam’s non-life market in terms of 2021 gross premium written and continues to grow its market share. It has a strong market position in commercial and industrial lines of business, including energy, property, engineering, aviation and marine insurance.

-- BERNAMA