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 (NSR) of aaa.VN (Exceptional) of Bao Minh Insurance Corporation (BMI). The outlook of these Credit Ratings (ratings) is stable.

These ratings reflect BMI’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. The ratings also factor in the neutral impact from BMI’s majority owner, State Capital Investment Corporation (SCIC), which is the sovereign wealth fund of Vietnam.

BMI’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level over the medium term. AM Best views BMI’s investment portfolio to be of moderate risk, with the majority of investments allocated toward term deposits and the remainder held in non-rated corporate bonds, equity investments, including a joint venture and real estate. Notwithstanding, the company maintains a moderate reinsurance dependence to support the underwriting of large limit risks and to manage its catastrophe exposure accumulation, although reinsurance credit risk is partially mitigated by its good quality reinsurance panel.

AM Best views BMI’s operating performance as adequate, supported by its five-year average return-on-equity ratio of 10.2% (fiscal-year 2020-fiscal-year 2024). Underwriting performance deteriorated in fiscal-year 2024, driven by losses from Typhoon Yagi and a higher expense ratio; although, BMI continued to report positive overall earnings in that same fiscal year. Subsequently, underwriting margins showed a recovery in the first nine months of 2025, following ongoing portfolio remediation actions. Investment returns remain a stable contributor to overall earnings with a five-year average net investment yield of 5.5% (fiscal-year 2020-fiscal-year 2024).

AM Best views BMI’s business profile as neutral. BMI is ranked as the third-largest non-life insurer in Vietnam based on 2024 direct premiums. The company’s underwriting portfolio is diversified by line of business and distribution channels. BMI’s business profile continues to benefit from business referrals from SCIC.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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