AM Best Affirms Credit Ratings of Post-Telecommunication Joint Stock 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 Post-Telecommunication Joint Stock Insurance Corporation (PTI) (Vietnam). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect PTI’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.

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 (BCAR). Capital adequacy has improved in recent years, driven by full earnings retention and portfolio restructuring. The company has a moderate-risk investment strategy, with the majority of investments held in cash and deposits, coupled with some higher-risk investments that include corporate bonds, real estate and equities. In addition, PTI’s exposure to large risks and natural catastrophes is partially mitigated through its reinsurance programme, whereby its reinsurance counterparties are generally of good credit quality.

AM Best assesses PTI’s operating performance as adequate as demonstrated by a five-year weighted average return-on-equity ratio of 8.6% (2020-2024). The company’s underwriting performance continued to show improvements following tightened underwriting guidelines and portfolio restructuring. In addition, PTI’s investment returns, consisting primarily of interest income, have been a relatively stable contributor to its overall earnings over the last five years.

PTI’s market share has reduced over the last three years, in part due to business restructuring and tighter risk selection. The company’s key product lines are mainly short-tail personal insurance, namely, motor, health and personal accident. PTI also benefits from a wide distribution network and good relationships with distribution partners.

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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AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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