PVI Insurance Corporation's headquarters in Hà Nội. AM Best highlighted PVI Insurance's strong operating performance, with an average return-on-equity ratio of 17.1 per cent over the past five years. — Photo courtesy of PVI

HÀ NỘI — PVI Insurance Corporation has once again affirmed its position as the leading non-life insurer in Việt Nam after being awarded an A- (Excellent) financial strength rating by global credit rating agency AM Best for the third consecutive year.

The insurer also retained its long-term issuer credit rating of 'A-' (Excellent) and the Vietnam National Scale Rating (NSR) of aaa.VN (Exceptional), with a stable outlook across all ratings.

According to AM Best, PVI Insurance's financial strength is underpinned by its very strong balance sheet, robust operating performance, neutral business profile and effective enterprise risk management.

The company also benefits from the backing of its majority owner, Germany-based HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G.), which provides financial flexibility and technical expertise.

PVI Insurance continues to lead Việt Nam's non-life insurance market across all key financial indicators, including profit, capital scale, revenue and market share. It remains the largest non-life insurer in the country, as measured by direct premiums in 2023, and has maintained steady market expansion.

The company's capitalisation, as assessed by Best’s Capital Adequacy Ratio (BCAR), is expected to stay at the strongest level in the medium term. Despite a high dividend payout ratio and significant reliance on reinsurance to underwrite large-scale industrial risks, PVI Insurance maintains a well-balanced investment portfolio, primarily in cash, term deposits and select corporate bonds and private equity.

AM Best highlighted PVI Insurance's strong operating performance, with an average return-on-equity ratio of 17.1 per cent over the past five years. Even in 2024, when underwriting results were impacted by Typhoon Yagi, the insurer sustained a return on equity of 14 per cent, demonstrating its resilience and profitability. Both commercial and retail insurance lines are expected to continue contributing positively to its earnings.

With a dominant presence in industrial insurance segments, including energy, property, engineering, aviation and marine insurance, PVI Insurance has strengthened its position in the regional market. The support from HDI V.a.G. has enhanced its technical capabilities and service offerings, particularly in industrial risk insurance.

The company's growth is also supported by its affiliation with PetroVietnam (PVN), one of the country’s largest state-owned oil and gas corporations.

Recent growth in inwards reinsurance has also been a notable factor in the company’s expansion strategy. However, prudent accumulation management remains a key focus area for sustainable growth.

PVI Insurance's continued recognition by AM Best reaffirms its financial strength and leadership in Việt Nam's non-life insurance sector, positioning it for further growth in both domestic and regional markets. — VNS