Singapore – April 22, 2016

A.M. Best has affirmed the financial strength rating (FSR) of B++ (Good) and the issuer credit rating (ICR) of “bbb” of Vietnam National Reinsurance Corporation (VINARE) (Vietnam). The outlook for the FSR remains stable while the outlook for the ICR remains positive.

The ratings reflect VINARE’s adequate risk-adjusted capitalization, consistent operating performance and good business profile.

VINARE’s risk-adjusted capitalization is supported by its low net and gross underwriting leverage. The company has low premium retention and cedes a signification portion of risk to a diversified panel of retrocessionaires. VINARE’s operating performance also has been profitable as its underwriting activity and investment portfolio have generated positive results and contributed to capital growth.

The ratings also recognize VINARE’s business profile as the largest domestic reinsurer in Vietnam with strong relationships with the direct insurers in the country.

Offsetting rating factors include VINARE’s high and fluctuating dividend payouts, which has impeded the company’s capital growth. Underwriting results from some major sources of business, such as its property business, as well as results of certain cedants, remain unsatisfactory.

Positive rating actions may occur if the company can sustain its profitability with an improvement in underwriting performance and demonstrate steady capital growth.

Negative rating actions may arise from a material deterioration in operating performance that would affect the company’s risk-adjusted capitalization.

(Source: A.M. Best)