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FOR IMMEDIATE RELEASE
SINGAPORE - AUGUST 18, 2016 08:30 AM (EDT)
A.M. Best has affirmed the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” of PVI Reinsurance Joint-stock Corporation (PVI Re) (Vietnam). The outlook for each rating remains positive.
The rating affirmations reflect PVI Re’s adequate risk-adjusted capitalization, favorable operating results and good business profile.
PVI Re’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is supported by a large proportion of assets invested in cash and deposits and the good quality of its reinsurance panel. PVI Re has achieved a strong operating performance over the past three years, with combined ratios below 90% and operating ratios below 66%, outperforming local and regional peers. PVI Re benefits from its strong affiliation with PVI Insurance Corporation, the market leader in Vietnam’s energy and property insurance market. In addition, it receives support in terms of technical knowledge and business referrals from Talanx AG, one of the leading insurance groups in Europe.
Offsetting rating factors are the limited scale and size of PVI Re’s operations compared with other regional non-life reinsurers.
Positive rating actions could occur if the company’s growth is supported by organic capital growth and a higher capital base, which would allow PVI Re to retain more profitable business and compete more effectively.
Conversely, negative rating actions could occur if the company’s risk-adjusted capitalization declines materially as a result of higher-than-expected underwriting leverage.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.