AM Best Confirms Petrolimex Insurance Corporation Credit Rating – InsuranceNewsNet

Singapore–(BUSINESS WIRE)–
AM Best has affirmed Petrolimex Insurance Corporation’s (PJICO) Financial Rating of B++ (Good) and Long-Term Issuer Credit Rating of ‘bbb’ (Good) (Vietnam). The outlook for these credit ratings is stable.

The rating reflects the strength of PJICO’s balance sheet, which AM Best assesses as strong, adequate operating results, a neutral business profile and adequate enterprise risk management (ERM).

PJICO’s balance sheet strength assessment is underpinned by risk-adjusted capital as measured by Best Capital Adequacy Ratio (BCAR) and is expected to remain at its strongest level over the medium term. The company’s balance sheet strength assessment is underpinned by stable capital adequacy and moderate net underwriting leverage. The company also maintains a generally conservative investment strategy, with the majority of investments being made in cash and fixed deposits. The company relies moderately on reinsurance to support its underwriting capacity for large real estate and engineering risks and to manage its accumulated risk and catastrophe exposures. Reinsurance panels are generally viewed as having high credit quality, although they have exposure to unrated counterparties.

AM Best rates PJICO’s performance as adequate, as evidenced by a five-year average combined ratio of 97.7% and return on equity of 12.2% (2017-2021). Commercial insurance underwriting margins, such as property and marine cargo insurance, typically benefit from low net loss ratios and good reinsurance commission income. PJICO’s underwriting performance in 2021 improved compared to the previous year due to lower claims performance given his COVID-19-related travel restrictions in 2021. Vietnam An increase in net premiums earned due to the release of premium reserves. His after-tax profit for the first nine months of 2022 is 162 billion dong compared to 260 billion dong This was primarily due to lower underwriting earnings based on the company’s unaudited financial statements. In addition, normalization of billing frequency may constrain underwriting margins in the short term. PJICO’s investment returns are expected to remain stable and continue to be a significant contributor to overall earnings.

AM Best considers PJICO’s business profile to be neutral. In 2021, PJICO was ranked as the 5th largest property and casualty insurer in the world. Vietnamand has a market share of approximately 6% of gross premiums written. The company’s business profile benefits from shared branding and preferential access to cargo operations by its largest non-majority shareholder, Vietnam National Oil Group (Petrolimex). The premium structure is moderately diversified, with the main business areas being automobile insurance, property insurance, health insurance and marine cargo insurance. PJICO sources business directly and through an extensive network of distributors.

Ratings are communicated to the rated entity prior to issuance. Ratings were not revised after that notice unless otherwise stated.

This press release relates to credit ratings posted on AM Best’s website. For all rating information related to the release and related disclosures, including details of the office responsible for issuing the individual ratings referenced in this release, please see AM Best’s Recent Ratings Activity web page. please give me. For additional information on the use and limitations of credit rating opinions, please see our best credit rating guide. For information on proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments, and AM Best Press Releases, please see our Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider dedicated to the insurance industry.Head office location usathe company operates in more than 100 countries and its regional offices are: London, Amsterdam, dubai, Hong Kong, Singapore When Mexico CityFor more information, please visit www.ambest.com.

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Susan Tan
financial analyst

+65 6303 5023

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Christopher Sharkey
manager, public relations

+1 908 439 2200, ext. 5159

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Chris Lim
Senior Financial Analyst

+65 6303 5018

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Al Slavin
communication specialist

+1 908 439 2200, ext. 5098

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Source: AM Best