A.M. Best Affirms Ratings of BIDV Insurance Corporation
HONG KONG--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” of BIDV Insurance Corporation (BIC) (Vietnam). The outlook for both ratings is stable.
The ratings reflected BIC’s favorable risk-based capitalization, strategic support from the Bank for Investment and Development of Vietnam JSC (BIDV) and the continuously positive operating results.
BIC continued to strengthen its chartered capital in 2014, according to its business plan. The company’s moderate underwriting leverage and investment risk profile contribute to the company’s favorable risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR).
BIDV continued to support BIC’s business growth through its bank brand, network and customer base. Moreover, BIC maintained its promising operating performance due to its positive underwriting results and stable investment performance.
Subject to regulatory approval, Fairfax Asia Limited (Fairfax Asia) will acquire 35% of the newly issued shares in BIC and become a strategic investor. Fairfax Asia will provide BIC with technical assistance in areas such as underwriting management, risk management, information technology and in developing distribution channels.
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