KUALA LUMPUR, Dec 11 -- Global credit rating agency, AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of ‘bbb+’ to Fubon Insurance Vietnam Co Ltd (Fubon Vietnam) Vietnam.
The outlook assigned to these Credit Ratings (ratings) is stable, according to a statement.
The ratings reflect Fubon Vietnam’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Fubon Vietnam’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation that is expected to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio.
Favourable balance sheet considerations include the company’s low net underwriting leverage, full profit retention to support its business growth over recent years and a conservative investment portfolio, comprising solely cash and term deposits.
AM Best views the company’s operating performance as adequate, as demonstrated by a five-year average return-on-equity ratio of 5.2 per cent (2015-2019).
Underwriting performance improved to a level of modest profitability in 2019, supported by portfolio remediation measures and an increasing business scale, which has helped lower the company’s expense ratio.
Although the company is considered a small size player within Vietnam, it has a good market position in its core business segment of property insurance.
For more information, visit www.ambest.com.
-- BERNAMA
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