A.M. BEST UPGRADES ISSUER CREDIT RATING OF VIETNAM NATIONAL REINSURANCE CORPORATION

SINGAPORE, April 28 (Bernama-BUSINESS WIRE) -- A.M. Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Vietnam National Reinsurance Corporation(VINARE) (Vietnam). The outlook of the Long-Term ICR has been revised to stable from positive, while the FSR outlook remains stable.

The rating upgrade reflects VINARE’s consistent operating performance, strong risk-adjusted capitalization and good business profile in Vietnam’s non-life reinsurance market. VINARE has maintained good operating performance throughout the past few years from underwriting and investment activities. The company achieved a five-year average combined ratio of approximately 89% from 2012 to 2016, lower than many direct insurers in Vietnam. Tighter underwriting in its fire business helped improve its combined ratio in 2016. VINARE’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is supported by its low net and gross underwriting leverage. The company’s investment portfolio is very conservative, with a majority of its assets invested in cash and deposits.

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