A.M. Best Affirms Credit Ratings of PVI Insurance Corporation

A.M. Best has affirmed the Financial Strength Rating of B++
(Good) and the Long-Term Issuer Credit Rating of “bbb” of PVI
Insurance Corporation (PVI Insurance) (Vietnam). The outlook of
these Credit Ratings (ratings) is stable.

The ratings reflect PVI Insurance’s balance sheet strength, which A.M.
Best categorizes as very strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise risk
management.

PVI Insurance’s risk-adjusted capitalization, as measured by Best’s
Capital Adequacy Ratio (BCAR), is supported by a large proportion of
assets invested in cash and deposits. Currently, PVI Insurance is the
second-largest non-life insurer in Vietnam and remains dominant in the
energy, engineering and property business. In addition, PVI Insurance
continues to receive support from PVI Holdings and Vietnam
National Oil & Gas Group (PVN), the largest state-owned
enterprise in Vietnam, as well as Talanx AG, one of the
leading insurance groups in Europe.

Offsetting rating factors include the company’s low earnings retention
and the challenging retail segment. In addition, businesses from PVN and
its affiliates, which are an important source of profits to PVI
Insurance, have declined due to the challenging environment for oil- and
gas-related insurance business.

Positive rating actions could occur if PVI Insurance is able to
demonstrate stability in its risk-based capitalization while improving
its operating performance. Negative rating actions could occur if the
company’s business profile and operating performance weaken materially.

Ratings are communicated to rated entities prior to publication.
Unless stated otherwise, the ratings were not amended subsequent to that
communication.

This press release relates to Credit Ratings that have been published
on A.M. Best’s website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and A.M. Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating
Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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