KUALA LUMPUR, March 24 (Bernama) -- AM Best has affirmed the financial strength rating of A- (Excellent), the long-term issuer credit rating of “a-” (Excellent), and the Vietnam National Scale Rating of aaa.VN (Exceptional) for PVI Insurance Corporation (PVI Insurance), with a stable outlook.
The credit ratings (ratings) reflect PVI Insurance’s very strong balance sheet, strong operating performance, neutral business profile, and appropriate enterprise risk management. The affirmation also factors in rating support from its ultimate parent, HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G.).
The global credit rating agency said in a statement that PVI Insurance’s balance sheet strength is supported by its risk-adjusted capitalisation, measured via Best’s Capital Adequacy Ratio, which is expected to remain at the strongest level over the medium term.
The company benefits from financial flexibility as a majority-owned subsidiary of HDI V.a.G. Its investment portfolio is considered moderate risk, primarily in cash and term deposits, supplemented by non-rated corporate bonds, affiliated private equity, and real estate.
Offsetting factors include a high dividend payout ratio and reliance on reinsurance for underwriting large commercial property, engineering, and energy risks.
Operating performance is strong, supported by a five-year average return on equity ratio of 16.7 per cent from fiscal year (FY) 2021 to FY 2025. FY 2025 earnings improved due to favourable loss experience and reserve development following Typhoon Yagi.
Profitable results in both commercial and retail lines, combined with stable investment income from interest and dividends, are expected to continue driving overall earnings.
PVI Insurance’s business profile is assessed as neutral. It remains Vietnam’s largest non-life insurer based on 2024 and nine months of 2025 direct premiums written. The company holds strong positions in commercial and industrial lines, including energy, property, engineering, aviation, and marine insurance.
Support from HDI V.a.G. has enhanced technical expertise and service offerings, strengthening PVI Insurance’s regional position in industrial risk coverage. Recent growth has been driven by expansion in inwards reinsurance, while prudent accumulation management continues to be monitored.
-- BERNAMA
