The affirmed Excellent ratings and stable outlook also factor in the neutral impact from the company’s ultimate majority owner, Malayan Banking Berhad (Maybank group).
The reinsurer is projected to "maintain prudent underwriting discipline" amid softening reinsurance market conditions, according to the ratings agency.
Rating agency's shift reflects a market inflection point where record US$660bn in capital has restored buyer leverage and eroded the pricing power reinsurers enjoyed during the recent hard market.
The ratings agency said it will revisit the life insurer's credit profile once the effects of its new majority owner become clearer, amid softer earnings but solid capital strength.
Vietnamese insurer's underwriting results "continued to show improvements following tightened underwriting guidelines and portfolio restructuring," AM Best said.
