SINGAPORE, Dec 4 (Bernama-BUSINESS WIRE) -- AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of Bao Minh Insurance Corporation (BMI) (Vietnam). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect BMI’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also factor in a neutral impact from the company’s majority ownership by the State Capital Investment Corporation (SCIC), which is the sovereign wealth fund of Vietnam.
BMI’s balance sheet strength assessment is underpinned by 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). Despite the company’s moderate dividend payout ratio, AM Best expects retained earnings to remain sufficient to support planned business growth. Partially offsetting balance sheet factors include the company’s basic approach to asset liability management, despite exposure to longer-duration products within the company’s portfolio mix.
AM Best views the company’s operating performance as adequate, as demonstrated by a five-year average return-on-equity ratio of 7.2% (2015-2019). BMI’s combined ratio improved from 98.2% in 2018 to 97.0% in 2019, in part driven by the introduction of tighter underwriting guidelines and higher policy deductibles in its motor portfolio. Despite this, the company’s technical performance remains constrained partially by its elevated operating expense ratio. Over the near term, planned growth in personal accident and health business, which exhibits robust loss experience but high distribution costs, is expected to further increase the company’s expense ratio, although AM Best expects its combined ratio to remain stable. Over the past five years (2015-2019), the company’s overall earnings have been supported by healthy investment returns averaging in excess of 5% per annum, although these returns are expected to decline over the near term given domestic interest rate reductions seen in 2020.
AM Best assesses BMI’s business profile as neutral. BMI is ranked as the fourth largest non-life insurer in Vietnam based on 2019 gross premium written, although its market share has shown a gradual reduction over the years. BMI’s underwriting portfolio is viewed as diversified by line of business although the company has a single market concentration to Vietnam. BMI’s business profile benefits from a level of business referral from its majority shareholder; SCIC, albeit a divestiture by this shareholder is expected over the near to medium term.
AM Best considers the company’s ERM framework as appropriate given the size and complexity of its operations. Risk management capabilities are typically aligned with the profile of its key risks.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Contact
Chris Lim
Financial Analyst
+65 6303 5018
chris.lim@ambest.com
Myles Gould
Director, Analytics
+65 6303 5020
myles.gould@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com
Source : AM Best
Friday, December 4, 2020
AM BEST AFFIRMS CREDIT RATINGS OF BAO MINH INSURANCE CORPORATION
AM BEST AFFIRMS CREDIT RATINGS OF NONGHYUP PROPERTY AND CASUALTY INSURANCE COMPANY LIMITED
HONG KONG, Dec 4 (Bernama-BUSINESS WIRE) -- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of NongHyup Property and Casualty Insurance Company Limited (NH P&C) (South Korea). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect NH P&C’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect the implicit and explicit support the company receives from its ultimate parent company, the National Agricultural Cooperative Federation (NACF).
The risk-adjusted capitalisation of NH P&C, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed at the strongest level, supported by a capital increase of KRW 160 billion (USD 140 million) in 2019 from its immediate parent, NongHyup Financial Group Inc. (NHFG). NH P&C has maintained a zero-dividend policy since 2017 to strengthen its capitalisation in preparation for IFRS 17 and K-ICS, a new solvency regime that will be implemented in South Korea along with IFRS 17. The company’s conservative investment portfolio, consisting largely of highly rated domestic and overseas fixed-income securities, also adds stability to the current balance sheet strength assessment.
NH P&C’s operating performance is assessed as being adequate with a five-year average operating ratio of 98.7% (2015-2019) and a return-on-equity ratio of 3.2%. The company reported a slight improvement in 2019 net profit compared with 2018, during which the company incurred large losses related to government policy products amid abnormal weather conditions. Its underwriting performance remained unfavourable in 2019 due to a rise in its expense ratio, along with increased claims on medical coverage and a few large loss events in the long-term property line. Nonetheless, in the first half of 2020, its bottom line markedly increased to KRW 42 billion (compared with KRW 6 billion in the first half of 2019), driven by improved claims experience in the long-term and government policy insurance lines, as well as a normalised expense ratio.
As a wholly owned subsidiary of NHFG, the financial arm of NACF, NH P&C generated approximately 4% of South Korea’s non-life market based on 2019 direct premium written (DPW). While the long-term insurance line contributes the largest share of its business, NH P&C also exclusively provides South Korea’s farmers with government policy insurance such as crop and livestock insurance, which comprised approximately 28% of its DPW in 2019. Distribution is highly concentrated in the cooperative channel, which is a network of NACF’s members.
NH P&C is strategically important to its ultimate parent, NACF, due to its role as an exclusive provider of government policy insurance to NACF cooperative members. The rating enhancement reflects the operational and financial benefits that NH P&C derives from being a key member within NACF, including subsidies and reinsurance support from the government for government policy insurance, exclusive access to NACF’s cooperative channel, and capital support from its immediate parent, NHFG.
Negative rating actions could occur if there is a significant deterioration in the company’s risk-adjusted capitalisation or operating performance. Negative rating actions may also arise if the level of support or the company’s strategic importance to its ultimate parent diminishes to a degree that no longer supports the current level of enhancement.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20201203005719/en/
Contact
Chang Sim
Associate Financial Analyst
+852 2827 3407
chang.sim@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Chanyoung Lee
Senior Financial Analyst
+852 2827 3404
chanyoung.lee@ambest.com
Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com
Source : AM Best
Thursday, December 3, 2020
MANULIFE MALAYSIA AWARDED THE 2020 SUSTAINABILITY AND CSR MALAYSIA AWARD
The Company’s flagship Corporate Social Responsibility (CSR) programme held in 2019 was the Orang Asli Education Programme that supported the educational needs of 133 Orang Asli children from five villages: Kg. Sg. Ruai, Kg. Ulu Ruai, Kg. Sg. Kelang, Kg. Satak and Kg. Bertang. The financial support provided by Manulife enabled transportation arrangements to be made for the Orang Asli children to attend school as well as participate in after-school learning activities.
In receiving the award, Manulife Insurance Berhad’s (MIB) Chief Marketing Officer, Jason Lim Yeong Tah said, “Winning this award solidifies the Company’s CSR culture of giving back to the community in which we operate. We have a strong values-driven culture, whereby one of our Values, “Share Your Humanity”, emphasises that our business is conducted in a manner that is socially and environmentally accountable to our stakeholders by practicing responsible ethics. This forms part of our commitment as an active and caring corporate citizen in Malaysia that focuses on helping people lead every day better and more financially secure lives.”
MANULIFE MALAYSIA AWARDED THE 2020 SUSTAINABILITY AND CSR MALAYSIA AWARD
Wednesday, December 2, 2020
Nippon Express Indonesia secures GDP certification for proper pharmaceuticals distribution
KUALA LUMPUR, Dec 1 -- PT. Nippon Express Indonesia (NE Indonesia), a local subsidiary of Nippon Express Co Ltd has acquired Good Distribution Practice (GDP) certification, indicating compliance with quality standards established for the proper distribution of pharmaceuticals, effective Oct 4.
According to a statement, this is for the air transport services offered by the company’s facility in Soewarna Business Park in Jakarta.
Given Indonesia's notable population growth, the pharmaceutical industry there is expected to grow increasingly.
While the share of pharmaceutical products manufactured within the country is still high, both imports and exports are likely to rise due to the expansion of markets and the diversification of needs, and this in turn should push up demand for air transport services offering proper handling of pharmaceuticals.
The recent acquisition of GDP certification means that NE Indonesia has in place a system capable of providing safe and high-quality GDP-compliant air transport services.
This enables the company to meet the logistics needs of customers in Indonesia's pharmaceutical industry by utilising Nippon Express's global network and transport solutions.
Nippon Express will continue enhancing its services to satisfy the increasingly sophisticated and diverse needs of the pharmaceutical industry and stepping up its efforts on behalf of the industry, which has been positioned as a priority industry in the Nippon Express Group's Medium-term Management Plan.
More details at http://www.nipponexpress.com/
-- BERNAMA
Clinigen strengthens Southeast Asia presence with Malaysian office
“Pharmaceutical and biotechnology companies are increasingly looking for specialist partners to work with them in Asia. The opening of our Malaysian office provides Clinigen with greater opportunities to offer our customers at both a global and local level,” said Clinigen’s Group Chief Executive Officer, Shaun Chilton.
According to a statement, the new office is part of Clinigen’s strategy to expand its footprint in Southeast Asia, an important market for the Group.
The Group’s strategy in Malaysia is to become the vendor of choice for the sourcing and supply of medicines to its customers, providing additional infrastructure to support its mission to deliver the right medicine to the right patient and the right time.
The immediate aim is to expand access to unlicensed medicines by extending the reach of the Group’s Unlicensed Medicines exclusive supply agreements and on-demand service, as well as offering Clinigen’s Clinical Services to its customers.
In addition, Clinigen’s presence will increase its capability in the supply and distribution of products from the Group’s portfolio of licensed medicines and makes Clinigen a more attractive partner for pharma companies looking to commercialise products outside of their home geographies, using Clinigen’s regulatory expertise.
The opening of the Malaysian office further expands its international supply chain and operational network as Clinigen employs over 1,150 people globally, across 14 international locations.
More details at www.clinigengroup.com.
-- BERNAMA
Tuesday, December 1, 2020
HIV Prevention Trials Network secures funding to continue research agenda
The core and protocol-specific funding will enable the HPTN to continue its HIV prevention research efforts focused on developing new biomedical prevention methods and optimising the integration of proven biomedical, behavioural and structural interventions to achieve high-effectiveness and impact.
During this new funding cycle, the HPTN will focus on four priority areas including identifying novel antiretroviral (ARV)-based methods and delivery systems for HIV prevention, and developing multi-purpose technologies for HIV prevention as well as for contraception and prevention of other sexually transmitted infections.
The HPTN will also continue as a partner in the COVID-19 Prevention Network (CoVPN). The recently-formed CoVPN evaluates biological agents, including vaccines and monoclonal antibodies to prevent COVID-19.
Recognising the challenges of long-term adherence to daily oral pre-exposure prophylaxis (PrEP), the HPTN has intensely pursued research to evaluate the safety and efficacy of long-acting injectable cabotegravir (CAB LA) for PrEP.
Future approaches may include the use of implants, patches, and microneedles to deliver CAB LA and/or other long-acting ARVs, according to a statement.
Combining ARV-based prevention tools that protect against HIV acquisition with efficacious contraceptive agents is compelling for persons who desire contraception and HIV prevention.
Based in Durham, NC, FHI 360, a nonprofit human development organisation, has been the leadership and operations centre for the HPTN for more than 15 years and will continue to serve that role.
-- BERNAMA
INSPIRING STUDENTS THROUGH FINCO'S CEO VOLUNTEERING MONTH
Financial industry volunteers are a core element of FINCO’s flagship FINCO Reads and FINCO Mentor programmes and, despite restrictions on in-person volunteering in schools, FINCO’s first CEO Volunteering Month went ahead as planned with over 120 students dialling in to ask questions and get advice from seasoned leaders from Maybank, Standard Chartered Bank, Prudential Assurance, AIG Insurance, RHB Islamic Bank and Maybank Investment Bank.
Mr. Antony Lee, CEO of AIG Malaysia Insurance joined a FINCO Mentor Life Aspiration Workshop where students from SMK Sg. Paoh, Sarawak were eager to ask questions and gain insights into what it takes to achieve personal and professional success. Mr. Lee advised students, “Be open to change. The world is full of opportunities. Sometimes you need to take a step backwards to move 2 steps forwards.” Whereas students dialling in from Kelantan, Sabah and Selangor posed more personal questions to Mr. Abrar Anwar, CEO of Standard Chartered Bank, asking him, “How do you handle people who look down on you?”
Tan Sri Azman Hashim, Chairman of FINCO’s Board of Directors said, “The financial industry shares a similar belief that education is crucial to enhancing the lives and livelihoods of youths from B40 communities. Over the past three years, financial institutions have encouraged hundreds of staff members to volunteer for FINCO programmes in schools across the country. I’m pleased that our Board members were able to connect with students and provide advice and the encouragement to be resilient and persevere with their studies, particularly during these long school closures”.
Since FINCO’s Life Aspiration Workshops are designed to encourage students to explore their personal values and life and career goals, each FINCO Mentor CEO volunteering session was very much driven by students’ own questions and interests. Key takeaways from sessions with Mr. Gan Leong Hin, CEO of Prudential Assurance and Dato’ Adissadikin Ali, CEO of RHB Islamic Bank, varied from, ‘have self-confidence’, ‘have self-discipline’ to ‘follow your passion and be happy’.
15-year-old Nabil from SMK Sungai Ara, Penang reflected on a session with Datuk Abdul Farid Alias, Group CEO of Maybank, “I did not know that he was from a small town and not from a big city. It means it is possible for me to be successful too”.
Volunteering for FINCO Reads, an English proficiency initiative, Encik Fad’l Mohamed, CEO of Maybank Investment Bank, led a Show and Tell on favourite books. Sharing his personal takeaways from his favourite book, A Driver’s Son by Tan Sri Abdul Kadir, students were encouraged to be disciplined and never give up.
After joining the session Haleisya from SK Sungai Danga, Johor told us, “I felt so nervous in the beginning but now that it is over, I can’t believe that I spoke to a CEO and learnt so much!”
About the Financial Industry Collective Outreach
The Financial Industry Collective Outreach (FINCO) is a collaborative initiative pioneered by all financial institutions (FIs) in Malaysia with the guidance of Bank Negara Malaysia to provide underprivileged children and youth with the guidance and educational tools they need to achieve their life goals.
FINCO seeks to achieve these objectives through the collective development of flagship programmes in English Proficiency and Life Aspiration, as well as coordinated efforts on Financial Literacy and Disaster Relief and shared programmes supported by individual financial institutions.
FINCO Website: www.finco.my
Instagram: finco_my
SOURCE: AmBank Group
FOR MORE INFORMATION, PLEASE CONTACT:
Name: Ms. Clare Walker
Chief Executive Officer, FINCO
Tel: 012 232 5831
Email: clare.walker@finco.my
Name: Ms. Tham Yin Yee
Programme Director, FINCO
Tel: 017 205 6183
Email: yinyee@finco.my
--BERNAMA