AM Best Affirms Vietnam’s PTI Credit Ratings With Stable Outlook 

KUALA LUMPUR, Jan 14 (Bernama) -- 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 of aaa.VN (Exceptional) of Vietnam’s Post-Telecommunication Joint Stock Insurance Corporation (PTI).

These credit ratings (ratings), which have a stable outlook, reflected PTI’s strong balance sheet strength, adequate operating performance, neutral business profile and appropriate enterprise risk management, as assessed by AM Best.

In a statement, the global credit rating agency said PTI’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which remained at the strongest level in 2024, as measured by Best’s Capital Adequacy Ratio.

Capital adequacy has improved in recent years, driven by full earnings retention and portfolio restructuring. The company maintains a moderate-risk investment strategy, with most assets held in cash and deposits, alongside selective exposure to corporate bonds, real estate and equities.

Exposure to large risks and natural catastrophes is partly mitigated through a reinsurance programme with generally good-quality counterparties.

Operating performance is assessed as adequate, underpinned by a five-year weighted average return-on-equity ratio of 8.6 per cent (2020-2024).

Underwriting results have continued to improve following tighter underwriting guidelines and portfolio restructuring, while investment income—primarily interest income—has provided a stable contribution to earnings.

PTI’s market share has declined over the past three years, in part due to business restructuring and tighter risk selection. The insurer’s core business remains focused on short-tail personal insurance lines, namely, motor, health and personal accident.

PTI also benefits from a broad distribution network and solid relationships with its distribution partners.

-- BERNAMA