KUALA LUMPUR, Dec 16 -- Credit ratings outlook of Bao Minh Insurance Corporation (BMI) Vietnam is stable, according to AM Best, a global credit rating agency specialising in the insurance industry.
This follows affirmation of the Financial Strength Rating of B++ (good) and the Long-Term Issuer Credit Rating of ‘bbb’ of the company.
The ratings reflect BMI’s balance sheet strength, which AM Best categorised as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
According to a statement, BMI’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation that remains at the strongest level, as measured by Best’s Capital Adequacy Ratio.
Despite its moderate dividend payout ratio, which has limited the company’s capital growth, retained earnings have remained sufficient to bolster shareholders’ equity and support business growth.
AM Best expects the organisation to continue focus on underwriting profitability despite rising competitive pressures. However, there are concerns that the long-duration health and personal accident products may exhibit higher loss ratios in later policy years.
The company’s premium is well-diversified by product. The main lines of businesses are personal accident and health, motor, and property and engineering, which collectively accounted for approximately 76 per cent of gross written premiums in 2018.
-- BERNAMA
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