Bao Minh Insurance Corporation Credit Ratings affirmed - AM Best

KUALA LUMPUR, Dec 4 -- Global credit rating agency, AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of ‘bbb’ of Bao Minh Insurance Corporation (BMI) Vietnam.

The outlook of these Credit Ratings (ratings) is stable, according to a statement.

The ratings reflect BMI’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also factor in a neutral impact from the company’s majority ownership by the State Capital Investment Corporation (SCIC), which is the sovereign wealth fund of Vietnam.

BMI’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation that is expected to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio.

Despite the company’s moderate dividend payout ratio, AM Best expects retained earnings to remain sufficient to support planned business growth.

AM Best assesses BMI’s business profile as neutral. BMI is ranked as the fourth largest non-life insurer in Vietnam based on 2019 gross premium written, although its market share has shown a gradual reduction over the years.

BMI’s business profile benefits from a level of business referral from its majority shareholder; SCIC, albeit a divestiture by this shareholder is expected over the near to medium term.

More details at www.ambest.com.

-- BERNAMA