AM Best Affirms Credit Ratings of Vietnam National Reinsurance 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 Vietnam National Reinsurance Corporation (VINARE) (Vietnam). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect VINARE’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

VINARE’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which was at the strongest level at year-end 2025 and is expected to remain at this level over the medium term. Offsetting balance sheet strength factors include the company’s moderate investment risk, primarily driven by its holdings of equity investments, which include listed stocks and private placements. Additionally, VINARE exhibits a moderate reliance on retrocession to support its underwriting of large commercial risks; however, the credit risk associated with this dependence is mitigated partly by the sound credit quality of the counterparties.

AM Best assesses the company’s operating performance as strong, supported by its five-year average return-on-equity ratio of 10.8% (fiscal years 2021-2025). VINARE has generated robust underwriting profits, supported by favourable underwriting performance of its commercial businesses, although this was offset partially by a higher expense ratio. Investment income remains the key contributor to the company’s overall earnings, with a net investment income ratio of 22.6% in fiscal year 2025. Prospectively, AM Best expects the company to continue delivering strong operating performance, supported by favourable underwriting performance from its core commercial lines and robust investment income.

AM Best assesses VINARE’s business profile as neutral. As the national reinsurer of Vietnam, VINARE has established long-standing relationships with local cedants, supporting its domestic market position, where it generates the majority of its premium. The company has a well-diversified underwriting portfolio by lines of business, with a good balance between commercial and retail risks. Nonetheless, VINARE is exposed to elevated product risk given its sizable exposure to commercial and industrial risks.

AM Best assesses VINARE’s ERM as appropriate for the size and scope of its operations. VINARE’s risk management framework and risk modelling capabilities continue to benefit from the technical support and expertise provided by the company’s second-largest shareholder, Swiss Reinsurance Company Ltd.

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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