AM Best has affirmed that Vietnam-based PVI Insurance Corporation is set to maintain stable earnings, supported by solid underwriting performance and strong backing from its parent company, HDI Haftpflichtverband der Deutschen Industrie V.a.G.
According to the credit rating agency, PVI Insurance’s risk-adjusted capitalization, as measured by its Capital Adequacy Ratio (BCAR), is expected to remain at the highest level, reflecting the company’s strong financial position.
While AM Best noted that the company’s investment portfolio carries moderate risk due to exposure to non-rated assets such as corporate bonds and private equity, the majority of the portfolio remains in low-risk instruments like cash and term deposits.
However, AM Best highlighted concerns over high dividend payouts and the company’s reliance on reinsurance for large risks. These factors remain areas of focus for ongoing assessment.
In 2024, despite the challenges posed by Typhoon Yagi, PVI Insurance reported a 14% return on equity, with a five-year average of 17.1% from 2020 to 2024. The agency anticipates that stable earnings will continue to be driven by both underwriting and investment income, with particularly strong results from the company’s commercial and retail insurance lines.
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