PetroVietnam Insurance Company (PVI), an affiliate of the national oil and gas group, has received a financial strength rating of B+ (good) and an issuer credit rating of "bbb-" from global credit rating organisation AM Best Company.
"The ratings reflect PVI's sound capitalisation, excellent operating performance and strong market position in the Vietnamese non-life market," said AM Best.
The ratings were also based on the management's commitment to improving every aspect of the company, from level of capitalisation to operating performance.
The PVI is the second-largest non-life company in Viet Nam, with a premium market share in 2008 of 19 per cent. The compound annual growth rate of PVI's gross premiums over the four years of 2005-08 was 39 per cent, compared to an industry average of 23 percent during the period.
The company's risk-based capitalisation, as measured by Best's capital adequacy ratio, was also strong, and further business growth in the coming years would not put a strain on current capitalisation, the credit rating agency said.
PVI's capital increased by 82 percent during 2004-08, with capital exceeding VND2.4 trillion (US$128 million) in 2009 and net profit topping VND198 billion ($10.6 million).
As an affiliate of the PetroVietnam Group, the PVI could anticipate higher growth going forward with increased investment in refinery projects and infrastructure, although high inflation could increase the company's costs, AM Best said.
AM Best, founded in 1899, is a global full-service credit-rating organisation dedicated to serving the financial and healthcare industries.