SINGAPORE--(BUSINESS WIRE)--AM Best has placed under review with developing implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of PVI Insurance Corporation (PVI Insurance) (Vietnam).
These Credit Rating (rating) actions follow an announcement made by HDI Global SE on 23 June 2021 stating that it has partially divested its shareholding in PVI Holdings, the immediate parent of PVI Insurance, to comply with a regulatory condition imposed by the State Securities Commission of Vietnam.
As a result of this shareholding change, the ultimate ownership of PVI Holdings’ total charter capital by HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G. or the HDI group) has fallen below 50%.
As a wholly-owned subsidiary of PVI Holdings, the ratings of PVI Insurance have been placed under review with developing implications as AM Best needs to assess the impact of the recent, and any further near-term changes expected in the ultimate ownership of the company by the HDI group. As the ratings of PVI Insurance currently incorporate rating enhancement to reflect the level of ownership, integration and support from the HDI group, AM Best will need to give further consideration to PVI Insurance’s eligibility for rating enhancement prospectively.
The ratings of PVI Insurance will remain under review until AM Best can fully assess the impact of recent and any further near-term changes in ownership, as well as evaluate HDI group’s future plans for the company.
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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