PVI Insurance's strength masks risks from payouts and reinsurance

Its balance sheet is projected to stay at the highest level.

PVI Insurance Corporation’s underwriting performance is expected to remain robust over the medium term, supported by profitable results in both commercial and retail lines of business, according to AM Best.

Investment income, consisting mainly of interest and dividend income, is expected to remain a key contributor to the company’s overall earnings.

The agency expects PVI Insurance’s balance sheet strength to remain very strong, with risk-adjusted capitalisation projected to stay at the highest level under Best’s Capital Adequacy Ratio.

Support from its parent, HDI Haftpflichtverband der Deutschen Industrie V.a.G., is also expected to sustain financial flexibility.

PVI Insurance is expected to maintain its strong market position as Vietnam’s largest non-life insurer, whilst growth from inwards reinsurance will continue to support business expansion. 

However, AM Best noted that high dividend payouts and reliance on reinsurance for large risks remain key factors to monitor.