SINGAPORE, Nov 23 (Bernama-BUSINESS WIRE) -- AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Petrolimex Insurance Corporation (PJICO) (Vietnam). Additionally, AM Best has assigned the Vietnam National Scale Rating (NSR) of aaa.VN (Exceptional) to PJICO. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect PJICO’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.PJICO’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which is expected to remain at the strongest level prospectively, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s BCAR decreased in 2022, albeit still remained at the strongest level, mainly attributed to higher capital requirements due to robust business growth and higher investment exposure. At the same time, PJICO’s capital and surplus reported a slight decrease as a result of substantial dividend payments. AM Best expects that future dividend payouts will be moderated over the medium term. The company maintains a conservative investment strategy, with a majority of its investments held in cash and term deposits. The company has a moderate reliance on reinsurance to support its underwriting capacity for large property and engineering risks, as well as to manage accumulation risks and catastrophe exposure.However, the credit risk associated with this dependence is mitigated partly by the good credit quality of the reinsurance panel.
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