AM Best expects stable earnings from PVI Insurance’s underwriting

Although, investment portfolio carries moderate risk.

Vietnam-based PVI Insurance Corporation’s balance remains strong, with a robust operating performance and sufficient support from its ultimate parent (HDI Haftpflichtverband der Deutschen Industrie V.a.G.), AM Best said.

AM Best anticipates that PVI Insurance’s risk-adjusted capitalisation, measured by its Capital Adequacy Ratio (BCAR), will stay at the strongest level.

Although the investment portfolio carries moderate risk, with exposure to non-rated assets such as corporate bonds and private equity, the bulk remains in low-risk cash and term deposits. 

The agency flagged high dividend payouts and reliance on reinsurance for large risks as ongoing concerns.

Despite the impact of Typhoon Yagi, PVI Insurance reported a return on equity of 14% in 2024, with a five-year average of 17.1% between 2020 and 2024. 

AM Best expects underwriting and investment income to continue driving stable earnings, supported by profitable commercial and retail insurance lines.