Hanoi: AM Best has affirmed the financial strength rating of B++ (Good), the long-term issuer credit rating of 'bbb+' (Good), and the Vietnam National Scale Rating of aaa.VN (Exceptional) for Vietnam National Reinsurance Corporation (VINARE). The outlook for these ratings is stable, reflecting VINARE's very strong balance sheet strength, strong operating performance, neutral business profile, and appropriate enterprise risk management (ERM).
According to BERNAMA News Agency, VINARE's balance sheet strength is supported by its risk-adjusted capitalisation, which was measured at the strongest level by Best's Capital Adequacy Ratio at the end of 2025 and is projected to maintain this level in the medium term. However, the company faces moderate investment risk driven by its equity holdings and reliance on retrocession for large commercial risks. These risks are partly mitigated by the quality of counterparties.
The global credit rating agency evaluates VINARE's operating performance as strong, evidenced by a five-year average return-on-equity ratio of 10.8% from fiscal years 2021 to 2025. The company has achieved robust underwriting profits, attributed to the positive performance of its commercial businesses, despite being partially offset by a higher expense ratio. Investment income remains a significant contributor to its overall earnings, with a net investment income ratio of 22.6% in fiscal year 2025.
AM Best anticipates that VINARE will continue to demonstrate strong operating performance, driven by its core commercial business and stable investment income. As Vietnam's national reinsurer, VINARE benefits from longstanding relationships with local cedants and primarily derives its premium from the domestic market. The company boasts a well-diversified underwriting portfolio across various business lines, although it is exposed to higher product risk due to its significant commercial and industrial risk exposure.
VINARE's ERM is considered appropriate, bolstered by its risk management framework and technical expertise, which includes support from its second-largest shareholder, Swiss Reinsurance Company Ltd.