VINARE to maintain robust performance: AM Best

Its return-on-equity ratio for the past five years proved better incoming performance.

Vietnam National Reinsurance Corporation's (VINARE) 2022 performance was perceived as strong and stable, according to credit rating agency AM Best.

VINARE’s 2022 financial performance reflected strong risk-adjusted capitalisation.

As measured by Best’s Capital Adequacy Ratio (BCAR), VINARE’s capital adequacy ratio is supported by its conservative net underwriting leverage and exceptional selection of retrocessionaires.

Likewise, the reinsurer surpassed the minimum requirement for regulatory solvency during the year as personal accident premiums were reduced.

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“Offsetting factors to the company’s balance sheet strength include its moderate investment risk, high dividend payout ratio and exposure to catastrophe risk,” said AM Best.

Due to VINARE’s five-year weighted average of 9.9% in return-on-equity ratio, AM Best describes the firm to have a strong operating performance.

“Prospectively, AM Best expects the company to maintain its strong level of operating performance, supported by controlled underwriting growth and improved pricing conditions in its core lines of business.” stated AM Best.