Vietnam’s Bao Minh Insurance Credit Ratings Affirmed By AM Best

KUALA LUMPUR, Dec 5 (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 (NSR) of aaa.VN (Exceptional) of Bao Minh Insurance Corporation (BMI).

In a statement, the global credit rating agency said these credit ratings (ratings) with a stable outlook reflected BMI’s strong balance sheet, adequate operating performance, neutral business profile and appropriate risk management.

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

BMI’s balance sheet strength is supported by the strongest-level risk-adjusted capitalisation under Best’s Capital Adequacy Ratio, expected to remain robust over the medium term.

The insurer maintains a moderate-risk investment portfolio, concentrated in term deposits with additional holdings in non-rated corporate bonds, equities, a joint venture and real estate. BMI’s moderate reinsurance reliance helps support large limit risks and catastrophe exposure, partially offset by a high-quality reinsurance panel.

Operating performance is assessed as adequate, supported by a five-year average return-on-equity ratio of 10.2 per cent (fiscal year 2020 to fiscal year 2024). Underwriting performance deteriorated in fiscal 2024 due to Typhoon Yagi losses and a higher expense ratio, though BMI stayed profitable overall.

Margins improved in the first nine months of 2025 following continued portfolio remediation. Investment income remains stable, with a five-year average yield of 5.5 per cent.

BMI’s business profile remains neutral, ranking as Vietnam’s third-largest non-life insurer by 2024 direct premiums with a diversified portfolio across business lines and distribution channels. The company also continues to benefit from business referrals from SCIC.

-- BERNAMA