AM BEST AFFIRMS FUBON INSURANCE VIETNAM CO LTD CREDIT RATINGS

KUALA LUMPUR, Dec 13 (Bernama) -- AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of ‘bbb+’ (Good) of Fubon Insurance Vietnam Co Ltd (Fubon Vietnam) Vietnam.

The outlook of these Credit Ratings (ratings) is stable, according to a statement.

The ratings reflect Fubon Vietnam’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings also factor in rating enhancement from its parent company, Fubon Insurance Co Ltd (Fubon Insurance) Taiwan.

Fubon Vietnam’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation that is expected to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR).

AM Best considers the company’s high third-party reinsurance usage and dependence as an offsetting balance sheet factor, albeit that reinsurance counterparty risks are mitigated by reinsurance assets of typically good credit quality.

AM Best assesses Fubon Vietnam’s business profile as limited. Fubon Vietnam is a small-sized non-life insurer in Vietnam, with a market share of less than one per cent, as measured by 2020 gross premium written (GPW).

Although the company is considered a small size player within Vietnam, it has a good market position in its core business segment of property insurance.

The company’s ratings incorporate rating enhancement from its ownership and integration with Fubon Insurance. Fubon Vietnam benefits from its common branding and affiliation with Fubon Insurance, and receives implicit and explicit support from its parent.

More details at www.ambest.com.

-- BERNAMA