Hanoi: Global credit rating agency, AM Best has assigned a financial strength rating of B++ (Good), a long-term issuer credit rating of ‘bbb’ (Good), and a Vietnam National Scale Rating (NSR) of aaa.VN (Exceptional) to Military Insurance Corporation (MIC). The outlook for these credit ratings is stable, reflecting Vietnam-based MIC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management.

According to BERNAMA News Agency, the ratings also take into account a neutral impact from the company’s ultimate parent, Military Commercial Joint Stock Bank (MB). MIC’s balance sheet strength is supported by the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio. The company benefits from good financial flexibility, demonstrated by a track record of capital injections over the past decade.

The company’s history of robust internal capital generation supports capital requirements arising from planned business growth. MIC also maintains a conservative investment strategy, with the majority of its investments held in cash, term deposits, and fixed-income securities.

AM Best considers MIC’s operating performance to be satisfactory, with an average return on equity of 11.2 percent over five years and a combined ratio of 98.5 percent from 2020 to 2024. Its steady income from term deposits and bonds significantly contributes to its total earnings. Despite posting an underwriting loss last year, primarily due to Typhoon Yagi and other one-off factors, MIC reported a return to underwriting profitability in the first quarter of 2025. Prospective business expansion in wholesale lines is expected to enhance overall results.

Furthermore, AM Best assesses MIC’s business profile as neutral. The company ranked fourth by gross premiums written in Vietnam’s non-life insurance market, with approximately 6.3 percent market share in 2024.