A.M. Best Affirms Credit Ratings of PVI Reinsurance Joint-stock Corporation

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

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

PVI Re’s risk-adjusted capitalization remains strong, supported by a
large proportion of investments in cash and deposits and a low net
underwriting leverage. PVI Re has achieved a strong operating
performance over the past five years, with an average combined ratio
below 85% and an average operating ratio below 65%, outperforming local
and regional peers. PVI Re benefits from its affiliation with PVI
Insurance Corporation (PVI Insurance), the market leader in
Vietnam’s energy and property insurance market.

Offsetting rating factors are the limited scale and size of PVI Re’s
operations compared with other regional non-life reinsurers. The
company’s presence in Vietnam’s reinsurance market remains modest, and
it relies significantly on its sister company, PVI Insurance, for
business volume and underwriting profit.

Positive rating actions could result from a higher capital base and a
stronger profile in PVI Re’s domestic market. Conversely, negative
rating actions could occur if PVI Insurance’s business volumes decline
substantially or if PVI Re’s performance weakens materially.

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

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

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