KUALA LUMPUR, Nov 30 (Bernama) -- A.M. Best -- a global rating and information provider -- has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of ‘bbb’ of Bao Minh Insurance Corporation (Bao Minh) Vietnam.
The outlook of these credit ratings is stable. It reflects Bao Minh’s balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The company’s risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio is supported by a low underwriting leverage at the gross and net levels, a good quality of reinsurance assets and a liquid investment portfolio, with a majority of investments allocated to cash and deposits.
Despite continued annual net premium growth of 11 per cent over the past five years, the company’s expense ratio has increased over the same period and remains higher than its peers, a statement said.
Bao Minh is the third-largest non-life insurer in Vietnam based on gross premium written in 2017. It underwrites a diversified portfolio of business with the majority being short-tail businesses such as motor, health and personal accidents.
The company rating is well-positioned at the current rating and downward rating pressure could result from deterioration in the company’s operating performance. More details on www.ambest.com.
-- BERNAMA
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