KUALA LUMPUR, Feb 14 (Bernama) -- AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of ‘bbb+’ (Good) of PVI Insurance Corporation (PVI Insurance) Vietnam.
The outlook assigned to these Credit Ratings (ratings) is positive, according to a statement.
The ratings reflect PVI Insurance’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
In addition, PVI Insurance benefits from rating enhancement from HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G. or the HDI group).
The ratings of PVI Insurance were placed under review with developing implications on July 1, 2021, following an announcement by HDI Global SE that it had partially divested its shareholding in PVI Holdings, the immediate parent of PVI Insurance, to comply with a regulatory condition imposed by the State Securities Commission of Vietnam.
As a result of this shareholding change, the ultimate ownership of PVI Holdings’ total charter capital by HDI V.a.G. fell below 50 per cent; this caused uncertainty over PVI Insurance’s eligibility to continue receiving rating enhancement from AM Best in respect of its ownership, integration and support from HDI group.
The latest rating actions follow a period of further shareholding changes, which has seen the HDI group regain majority ultimate ownership of PVI Holdings. As a result of this, AM Best continues to afford rating enhancement to PVI Insurance in respect of its ultimate ownership by and the implicit support from the HDI group.
PVI Insurance’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 (BCAR).
AM Best views the company’s investment portfolio to be of moderate risk, with a majority allocation to cash and term deposits, albeit some exposure to higher-risk assets including affiliated private investments.
The company’s business profile is assessed as neutral. PVI Insurance is the second-largest insurer in Vietnam’s non-life market by 2020 gross premium written with a market leading position in commercial and industrial lines of business, including property, engineering, marine, aviation and energy insurance.
More details at www.ambest.com.
-- BERNAMA
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