AM Best Affirms Credit Ratings of Military Insurance Corporation

SINGAPORE--(BUSINESS WIRE)--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 Military Insurance Corporation (MIC) (Vietnam). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect MIC’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 a neutral impact from MIC’s ultimate parent company, Military Commercial Joint Stock Bank (MB).

MIC’s balance sheet strength assessment is underpinned by the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). MIC benefits from good financial flexibility, with a demonstrated track record of capital injections over the last 10 years. In addition, the company has a prudent investment strategy, with the majority of its investments held in cash, term deposits and fixed-income securities. Exposure to large risks and natural catastrophes is mitigated in part through MIC’s reinsurance programme. Furthermore, reinsurance counterparties are generally of good credit quality.

AM Best assesses MIC’s operating performance as adequate, with a five-year average return-on-equity ratio of 11.6% and a combined ratio of 98.4% (2021-2025). The streamlining and restructuring of MIC’s key functions over the past year are expected to support its future business growth with improved efficiency. Meanwhile, ongoing business expansion in commercial lines is expected to benefit future earnings. Additionally, the company’s stable stream of interest income from term deposits and bonds remains a key contributor to its overall earnings.

AM Best assesses MIC’s business profile as neutral. The company ranked fourth by gross premiums written in Vietnam’s non-life insurance market, with an approximately 6.2% market share in 2025, supported by a vast distribution network, including bancassurance, internal salesforce and external agents. The company’s premium mix is moderately diversified with key business lines being motor, health, personal accident, property and engineering insurance. MIC also benefits from both common branding and preferential access to customers of MB.

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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