AM Best has affirmed that PVI Insurance Corporation, based in Vietnam, will maintain stable earnings, supported by strong balance sheet fundamentals and robust operational performance. The credit rating agency highlights that PVI Insurance’s risk-adjusted capitalisation, measured by its Capital Adequacy Ratio (BCAR), is expected to remain at the strongest level.
Despite moderate risks within its investment portfolio, including exposure to non-rated assets like corporate bonds and private equity, AM Best notes that the majority of PVI’s investments are in low-risk cash and term deposits. This positioning provides a solid foundation for the company’s financial strength.
However, AM Best also identified potential risks, such as high dividend payouts and the company’s reliance on reinsurance for managing large risks, which could affect its long-term stability.
PVI Insurance’s performance in 2024 has been notable, despite challenges such as Typhoon Yagi, with a reported return on equity of 14% and a five-year average return of 17.1% from 2020 to 2024.
The agency expects PVI’s underwriting and investment income to continue driving stable earnings, with profitable commercial and retail insurance lines underpinning its financial outlook.
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