Recently, in Singapore, the world's leading financial credit rating organization AM Best announced the 2024 credit rating of BIDV Insurance Corporation (BIC).
Accordingly, AM Best continues to affirm BIC's financial capacity rating of B++ (Good), issuer capacity rating of bbb (Good), and national scale rating (NSR) of aaa.VN (Excellent), the highest in Vietnam. The outlook for upgrading the indicators is Stable.
The above rating results demonstrate BIC's strong financial capacity, impressive business results, capability profile and safe and effective risk management system.
BIC's financial capacity, measured through the capital adequacy ratio (BCAR), is highly rated by AM Best. The risk-based capital outlook continues to be well-suited to the Corporation's development strategy. In 2024, BIC will continue to maintain a prudent, safe and effective investment strategy. Reinsurance is also focused on to respond to major risks and natural disasters. BIC's reinsurance partners are all reputable reinsurers with good financial capacity.
BIC's performance indicators continue to be positively evaluated by AM Best. During the period 2019 - 2023, BIC's average return on equity (ROE) was 13.8%, the combined cost ratio was 94.3%, helping BIC have good profits from insurance business activities. Typhoon Yagi in Q3/2024 is expected to impact BIC's business results in the short term. However, AM Best assesses that the impact is not significant thanks to reinsurance programs. In addition, stable income from deposit and securities investments continues to be an important source of contribution to BIC's total revenue.
BIC's market share of original insurance premium revenue has also grown steadily over the years. Insurance lines that account for a large proportion of BIC's total original insurance premium revenue include personal insurance, property insurance and motor vehicle insurance.
BIC's risk management framework is assessed by AM Best as appropriate to its scale and operational reality, and is continuously strengthened with the support of parent bank BIDV and strategic partner FairFax.
