AM Best gives Vietnam's BIDV Insurance Corporation good rating

KUALA LUMPUR, Sept 10 -- AM Best has affirmed the Financial Strength Rating of B++ (good) and the Long-Term Issuer Credit Rating of ‘bbb’ of BIDV Insurance Corporation (BIC) Vietnam.

The outlook of these credit ratings is stable. It reflects the company’s balance sheet strength, which AM Best categorised as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings factor in a neutral impact from the company’s ultimate majority ownership by the Vietnam Government, according to a statement.

Despite BIC’s moderate dividend payout ratio over the past three years, retained earnings have remained sufficient to bolster shareholders’ equity and support business growth.

Other balance sheet considerations include the company’s reliance on third-party reinsurance to increase underwriting capacity for large property and engineering risks, as well as to manage accumulation risks and catastrophe exposure.

AM Best views the company’s operating performance as adequate, as evidenced by a five-year average return-on-equity ratio of 7.7 per cent (2014 to 2018).

AM Best is a global rating agency and information provider with unique focus on the insurance industry. More information at www.ambest.com.

-- BERNAMA