Vietnam National Reinsurance Corporation (VINARE) has been assigned with Financial Strength Rating B++ (Good) and Issuer Credit Rating bbb (stable outlook). These ratings were released by A.M.Best Asia – Pacific on 1^st November 2013.

“The ratings reflect VINARE’s solid risk-based capitalization, consistent operating performance, sound liquidity and its strong presence in Vietnam’s non-life reinsurance market,” said A.M.Best.

In 2012, VINARE posted gross written premiums of VND1,695 billion (including VND86.8 billion from the Pilot Agriculture Insurance Programme) and pre-tax profit of VND313.6 billion (including loss of VND19.7 billion from Pilot Agriculture Reinsurance). Total equity capital and assets as of 31^st December 2012 were VND2,320 billion and VND4,212 billion respectively (consolidated balance sheet). Return on equity was 12%.

The amount of money allocated for investment activities were VND3,055 billion as of 31^st December 2012, in which cash and deposits accounted for over 65%. All investment activities strictly follow the principle of security – efficiency – sustainability and the fact was that there were no bad debts or losses of invested money.

Between 2008 – 2012, VINARE recorded average growth rate of 10.5%  in terms of gross written premiums (including Pilot Agriculture Reinsurance) and of 11.3% in terms of pre-tax profit, with combined ratio averaging 90%.

In 2013 VINARE consistently adheres to tightening risk control and focusing on underwriting profit against a very challenging economic and local insurance background. Profit before tax is expected to grow 20% over that of 2012, reaching VND360 billion.

As the first professional reinsurer in Vietnam, VINARE has a close and firm relationship with lcoal insurance companies giving its strong access to the market. Twelve Vietnam direct insurers presently own a combined share of 23.8% of VINARE. VINARE also receives strong financial and operational support from the major shareholders, namely State Capital Investment Corporation (SCIC), which has a 40.4% share, and Swiss Reinsurance Company Limited (Swiss Re), with a 25% share. SCIC supports VINARE by providing access to the Vietnam government and economy in terms of information and networking. Swiss Re is the second-largest sharehlder of VINARE since early 2008, providing the company with technical support, product management, modeling capabilities and access to international business.

With the strategy to providing clients with extensive added values, VINARE commits to providing long-term solutions and services of international quality to the local and regional insurers, supporting Vietnam insurance industry towards a sustainable and efficient market growth and assuming social responsibility to support the socio-economic development and international competitiveness of Vietnam.