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A.M. Best Affirms Credit Ratings of Bao Minh Insurance Corporation
[November 09, 2017]

A.M. Best Affirms Credit Ratings of Bao Minh Insurance Corporation


A.M. Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb" of Bao Minh Insurance Corporation (BMI) (Vietnam). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect BMI's strong risk-adjusted capitalization, adequate operating performance and neutral business profile in Vietnam's non-life market.

The company's risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), is supported by a low underwriting leverage at the gross and net levels, a good quality of reinsurance assets and a liquid investment portfolio, with a majority of investments allocated to cash and deposits. As the third-largest insurer in Vietnam's non-life market, BMI has a strong presence across the country, with offices in 54 out of 63 provinces and cities. The company's combined ratio improved in 2016 as a result of an improvement in its expense ratio. Management accounts through September 2017 show that this is a continuing trend.

An offsetting rating factor is BMI's high expense ratio which, despite some recent improvement, remains higher than its peers. This is due partly to BMI's high acquisition costs, especially in its bancassurance and broker channels.

A sustained improvement in BMI's operating performance could result in positive rating actions. Downward rating pressure could result from deterioration in he company's operating performance.



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

This press release relates to Credit Ratings that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.


A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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