KUALA LUMPUR, Aug 13 (Bernama) -- AM Best has upgraded the Financial Strength Rating to B++ (good) from B+ (good) of PVI Reinsurance Joint-stock Corporation (PVI Re) Vietnam.
The global rating agency has also upgraded the company’s Long-Term Issuer Credit Rating to ‘bbb’ from ‘bbb-’, making stable outlook of these ratings.
The ratings reflect PVI Re’s balance sheet strength, which AM Best classified as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
In addition, PVI Re benefits from rating enhancement from HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G. or the HDI group).
The rating upgrades follow HDI V.a.G.’s increased ultimate ownership of PVI Re and the resulting implicit support that the subsidiary is expected to benefit from over the near term.
In the future, PVI Re is expected to benefit from the HDI group’s international product expertise in areas of risk selection, pricing and reserving, as well as its oversight and support in respect of risk management.
PVI Re’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation that AM Best expects to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio.
PVI Re is a small-sized reinsurer in Vietnam, with US$52 million of gross premium written last year. (US$1=RM4.19)