Vietnam National Reinsurance Corporation (VINARE) has received an “A-” Financial Strength Rating (FSR) and a “a-” Long-Term Issuer Credit Rating (Long-Term ICR) by AM Best. The ratings reflect the company’s strong balance sheet strength, strong operating performance, neutral business profile and appropriate risk management.
AM Best’s assessment of VINARE’s balance sheet strength is based on its very strong risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). This capital adequacy ratio is underpinned by the company’s low net underwriting leverage and high-quality panel of retrocessionaires. VINARE’s regulatory solvency also exceeds the minimum requirement by a wide margin and improved in 2022 with a reduction in the company’s personal accident premiums.
In terms of operating performance, VINARE recorded a five-year weighted average return-on-equity ratio of 9.9% (2018-2022). This strong performance is largely attributed to favourable performance of its commercial risks and stable investment income. Underwriting results improved further in 2022, driven by favourable attritional and catastrophe loss experience, and a reduced expense ratio.
AM Best views VINARE’s business profile as neutral, having established long-standing relationships with local cedants and government and has a well-diversified underwriting portfolio by lines of business.
AM Best also view VINARE’s Enterprise Risk Management (ERM) as appropriate given the developed reporting system and prudent risk management approach. This is further supported by the technical support provided by 25% shareholder Swiss Reinsurance Company Ltd.
Overall, these ratings are reflective of the strength and stability of VINARE’s operations and its commitment to risk management.
