KUALA LUMPUR, April 23 (Bernama) -- AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of ‘bbb+’ of Vietnam National Reinsurance Corporation (VINARE) Vietnam.
The outlook of these Credit Ratings (ratings) was stable, said AM Best in a statement.
The ratings reflect VINARE’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.
VINARE’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which remained at the strongest level in 2020.
The company’s balance sheet strength assessment is also supported by the stability of its capital adequacy, modest underwriting leverage and retrocession counterparties of good credit quality.
In addition, AM Best views the company’s investment portfolio to have moderate risk. While the majority of invested assets are held in cash, deposits and bonds, the company’s investment portfolio also includes private and public equities.
Prospectively, AM Best expects recent portfolio remediation measures taken by the company to support robust underwriting performance over the medium term.
Investment income also remains a significant driver of overall earnings, despite recent headwinds driven by interest rate declines and some capital market volatility as a result of the COVID-19 pandemic.
AM Best assesses VINARE’s business profile as neutral. The company is the larger of two domestic reinsurers in Vietnam, with gross premium written of VND 2.5 trillion (US$106 million) in 2020. (US$1 = RM4.113)
More details on the ratings at www.ambest.com
-- BERNAMA
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