AM Best has assigned a Financial Strength Rating of B++ (Good), a Long-Term Issuer Credit Rating of “bbb+” (Good) and the Vietnam National Scale Rating (NSR) of aaa.VN (Exceptional) to Bao Viet Insurance Corporation (BVGI) (Vietnam). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect BVGI’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in rating enhancement from BVGI’s parent, Bao Viet Holdings (BVH), a major finance and insurance group in Vietnam.

AM Best assesses BVGI’s balance sheet strength as very strong, 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. In addition, AM Best views the company as having good financial flexibility, as demonstrated by historical capital injections from BVH. In addition, BVGI has a moderate-risk investment portfolio, with the majority of the company’s investments allocated to cash, term deposits and bonds and the remainder held in equity investments and real estate. The company has a moderate reinsurance reliance to support its underwriting capacity and manage catastrophe exposure, although its exposure to credit risk is mitigated partially by the high credit quality of its reinsurance panel.

AM Best assesses BVGI’s operating performance as adequate, with a five-year average return-on-equity ratio of 9% (fiscal years 2020-2024). In 2024, the company delivered robust operating results with a return-on-equity ratio of 11.8% despite the impact of Typhoon Yagi. The company’s prospective underwriting performance is expected to be supported by prudent underwriting and pricing discipline. Furthermore, the company’s stable investment income, which comprises mainly interest and dividend income, also is supportive of overall profitability.

AM Best assesses BVGI’s business profile as neutral. BVGI is the second-largest non-life insurer in Vietnam, with a market share of 13% based on direct premiums written in 2024. BVGI’s underwriting portfolio is diversified moderately by line of business, with health and personal accident and motor vehicle insurance being the key lines. Also, the company distributes its products mainly through agencies and brokers.

BVGI’s ratings incorporate rating enhancement from its ownership and integration with BVH. The company benefits from group-wide corporate governance, as well as access to shared resources and services across various business functions. Although BVGI’s operations account for a small portion of the group’s consolidated revenue, the company is considered strategically important to the group.

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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