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TMCNet:  A.M. Best Affirms Credit Ratings of PVI Insurance Corporation

[July 11, 2018]

A.M. Best Affirms Credit Ratings of PVI Insurance Corporation

A.M. Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb" of PVI Insurance Corporation (PVI Insurance) (Vietnam). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect PVI Insurance's balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

PVI Insurance's risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), is supported by a large proportion of assets invested in cash and deposits. Currently, PVI Insurance is the second-largest non-life insurer in Vietnam and remains dominant in the energy, engineering and property business. In addition, PVI Insurance continues to receive support from PVI Holdings and Vietnam National Oil & Gas Group (PVN), the largest state-owned enterprise in Vietnam, as well as Talanx AG, one of the leading insurance groups in Europe.

Offsetting rating factors include the company's low earnings retention and the challenging retail segment. In addition, businesses from PVN and its affiliates, which are an important source of profits to PVI Insurance, have declined due to the challenging environment for oil- and gas-related insurance business.

Positive rating actions could occur if PVI Insurance is able to demonstrate stability in its risk-based capitalizaion while improving its operating performance. Negative rating actions could occur if the company's business profile and operating performance weaken materially.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit

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