SINGAPORE - MARCH 27, 2024 09:10 AM (EDT) AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of PVI Insurance Corporation (PVI Insurance) (Vietnam). The outlook of these Credit Ratings (ratings) is stable. Additionally, AM Best has assigned the Vietnam National Scale Rating (NSR) of aaa.VN (Exceptional) to PVI Insurance with a stable outlook.
The ratings reflect PVI Insurance’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings factor in rating enhancement from PVI Insurance’s ultimate parent, HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G.).
PVI Insurance’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level over the medium term. PVI Insurance benefits from good financial flexibility, given its majority ownership by HDI V.a.G. AM Best views the company’s investment portfolio to be of moderate risk, with the majority of investments allocated toward cash and term deposits and the remainder held in non-rated corporate bonds, affiliated private equity investments and real estate. Offsetting factors include the company’s high dividend payout ratio and high reinsurance dependence to support the underwriting of large commercial property, engineering and energy risks.
AM Best assesses PVI Insurance’s operating performance as strong, supported by its five-year average return-on-equity ratio of 17.9% (2019-2023). PVI Insurance continued to deliver robust underwriting profits in 2023 and achieved a combined ratio of 92.7%. Underwriting performance is expected to remain robust over the medium term supported by profitable results in commercial and industrial lines of business. Investment returns, consisting mainly of interest and dividend income, is expected to remain as a key contributor to the company’s overall earnings.
AM Best assesses PVI Insurance’s business profile as neutral. The company became the largest non-life insurer in Vietnam based on 2022 direct premiums and it continues to grow its market share. The company has a strong market position in commercial and industrial lines of business, including energy, property, engineering, aviation and marine insurance, as supported by its affiliation with the PetroVietnam group, one of the largest state-owned oil and gas corporations in Vietnam. Support from HDI V.a.G. has enhanced PVI Insurance's technical expertise and service offerings, strengthening its position in the regional industrial risks insurance segment
AM Best assesses PVI Insurance’s ERM approach as appropriate given the size and complexity of its current operations. PVI Insurance benefits from risk management and governance support from HDI V.a.G.
After again generating record Group net income of EUR 1,581 million in financial year 2023, the Talanx Group is proposing that the General Meeting lift the dividend per share by 35 cents to EUR 2.35. The Group is also optimistic about the future: for 2024, Talanx is expecting Group net income of more than EUR 1.7 billion and a dividend per share of EUR 2.50. For 2025, it is anticipating earnings in excess of EUR 1.9 billion. This means it expects to reach and clearly exceed the original earnings target for 2025 of EUR 1.6 billion ahead of schedule. The Talanx Group will present new targets for the period from 2025 to 2027 at its Capital Market Day in December. Insurance revenue rose 9 percent to EUR 43.2 (39.6) billion in financial year 2023, while operating profit improved to EUR 3.1 (2.8) billion. All divisions contributed to earnings growth, with Primary Insurance accounting for 46 percent of Group net income. A strong insurance service result for the year benefited from large losses remaining within budget and inflation-related price adjustments. At 16.6 percent, the return on equity was clearly above the strategic target of at least 10 percent.
....PVI Insurance Corporation (PVI Insurance) has just been approved by the Ministry of Finance to increase its charter capital from VND 3,300 billion to VND 3,500 billion in official dispatch No. 63/GPĐC23/KDBH dated March 29, 2024. Accordingly, PVI Insurance continues to be a non-life insurance enterprise with the largest charter capital in the Vietnamese market.
....
PVI Insurance Corporation (PVI Insurance), Vietnam's biggest general insurer, has strong operating performance, supported by its five-year average return-on-equity ratio of 17.9% (2019-2023), according to AM Best.
....