Monday, 24 July 2017

A.M. BEST AFFIRMS CREDIT RATINGS OF BIDV INSURANCE CORPORATION

SINGAPORE, July 21 (Bernama-BUSINESS WIRE) -- A.M. Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of BIDV Insurance Corporation (BIC) (Vietnam). The outlook of these Credit Ratings (ratings) remains positive.
 

The ratings reflect BIC’s good operating performance and strong risk-adjusted capitalization, which is supported by its low underwriting leverage. In terms of underwriting performance, BIC has performed well compared with its peers, especially in its loss ratio. Nonetheless, the company’s underwriting profit remains small in absolute terms.

The company’s investment portfolio is conservative, consisting mostly of cash and deposits. The company also receives a steady stream of interest income from these cash and deposits, which has supported overall results.

BIC is majority owned by the Bank for Investment and Development of Vietnam JSC (BIDV), one of the largest banks in Vietnam, and benefits from this affiliation in terms of branding, networking and customer outreach. Fairfax Financial Holdings Limited (Fairfax), the company’s second-largest shareholder, provides BIC with technical support in areas such as product development and investments.

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