KUALA LUMPUR, May 4 (Bernama) -- AM Best has affirmed the financial strength rating of B++ (Good), the long-term issuer credit rating of “bbb+” (Good), and the Vietnam National Scale Rating of aaa.VN (Exceptional) of Vietnam National Reinsurance Corporation (VINARE).
The outlook of these credit ratings (ratings) is stable, reflecting VINARE’s very strong balance sheet strength, strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
VINARE’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which was at the strongest level at year-end 2025 and is expected to remain at this level over the medium term.
Offsetting factors include moderate investment risk driven by equity holdings, as well as reliance on retrocession for large commercial risks, although associated credit risks are partly mitigated by the sound quality of counterparties, according to AM Best in a statement.
The global credit rating agency assesses VINARE’s operating performance as strong, supported by its five-year average return-on-equity ratio of 10.8 per cent (fiscal years 2021 to 2025).
The company has generated robust underwriting profits, supported by favourable underwriting performance of its commercial businesses, although partially offset by a higher expense ratio. Investment income remains the key contributor to its overall earnings, with a net investment income ratio of 22.6 per cent in fiscal year 2025.
Prospectively, AM Best expects VINARE to maintain strong operating performance, supported by its core commercial business and stable investment income.
As Vietnam’s national reinsurer, VINARE benefits from long-standing relationships with local cedants and derives the majority of its premium from the domestic market. The company maintains a well-diversified underwriting portfolio across business lines, although it remains exposed to elevated product risk due to its sizable commercial and industrial risk exposure.
VINARE’s ERM is assessed as appropriate, supported by its risk management framework and technical expertise, including support from its second-largest shareholder, Swiss Reinsurance Company Ltd.
-- BERNAMA
