SINGAPORE, Aug 28 (Bernama-BUSINESS WIRE) -- A.M. Best has revised the outlooks to stable from positive and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of PVI Reinsurance Joint-stock Corporation (PVI Re) (Vietnam).
 
In April 2013, A.M. Best revised the outlooks to positive from stable in consideration of plans for capital injections into PVI Re. Since then, the company’s capital position has been well below the levels presented originally. The company’s presence in Vietnam’s reinsurance market remains limited, and it relies significantly on its sister company, PVI Insurance Corporation (PVI Insurance), for business volumes. At the same time, the environment for oil- and gas-related insurance business has become increasingly challenging due to low energy prices. The revision of the outlooks to stable from positive reflects these developments.
 
Notwithstanding its limited capital size, PVI Re’s risk-adjusted capitalization remains strong. It is supported by a large proportion of investments in cash and deposits, and a high-quality reinsurance panel. Due to profitable business from its sister company, PVI Re’s operating performance has been strong and favorable compared with its peers. Nevertheless, reduced business volumes from PVI Insurance will limit growth opportunities going forward.
 
Positive Credit Rating (rating) actions could result from a higher capital base and a stronger profile in PVI Re’s domestic market. Conversely, negative rating actions could occur if the business volumes from PVI Insurance decline substantially or if PVI Re’s performance weakens materially.
 
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
 
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
 
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Contacts
A.M. Best
Tran Nhat Trung, +65 6589 8400, ext. 214
Associate Financial Analyst
trung.tran@ambest.com
or
Chi-Yeung Lok, +65 6589 8400, ext. 211
Associate Director, Analytics
chi-yeung.lok@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Source: A.M. Best
 
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http://www.businesswire.com/news/home/20170825005603/en
 
--BERNAMA