AM BEST REVISES OUTLOOKS TO POSITIVE FOR PETROLIMEX INSURANCE CORPORATION

SINGAPORE, Oct 16 (Bernama-BUSINESS WIRE) -- AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Petrolimex Insurance Corporation (PJICO) (Vietnam). These Credit Ratings (ratings) reflect PJICO’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The revised outlooks reflect improvement in the company’s balance sheet strength fundamentals over recent years. Prospectively, AM Best expects the company’s risk-adjusted capitalisation to remain at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). In addition, capital adequacy is expected to exhibit reduced volatility over the medium term as a result of growth in the absolute size of the company’s capital base, underpinned by robust retained earnings. PJICO’s balance sheet strength assessment also factors in the company’s generally conservative investment strategy with approximately 75% of investments held in cash and term deposits. Partially offsetting factors include the company’s exposure to reinsurance counterparties that are non-rated on an international financial strength rating scale, although there was a reduction in exposure to non-rated counterparties in 2019. http://mrem.bernama.com/viewsm.php?idm=38418