AM Best, a global credit rating agency, has recently affirmed the credit ratings of several insurance companies. In Vietnam, AM Best affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of 'bbb' (Good) of Bao Minh Insurance Corporation (BMI), a non-life insurer based in Vietnam. Additionally, AM Best assigned the Vietnam National Scale Rating (NSR) of aaa.VN (Exceptional) to BMI. The ratings reflect BMI's strong balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management. Despite its majority ownership by the State Capital Investment Corporation (SCIC), which is the sovereign wealth fund of Vietnam, AM Best considers the impact of this ownership to be neutral. BMI is ranked as the fourth-largest non-life insurer in Vietnam based on 2022 direct premiums. The company's underwriting portfolio is diversified by lines of business, although it has a single-market concentration in Vietnam. BMI's business profile benefits from business referrals from its majority shareholder, SCIC [e0eed694].
In Malaysia, AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of 'a-' (Excellent) of Malaysian Reinsurance Berhad (Malaysian Re). Malaysian Re is the largest non-life reinsurer in Malaysia, with a dominant domestic reinsurance market share. The company benefits from a regulatory domestic cession arrangement, which provides it with access to a steady stream of profitable domestic business. This arrangement will remain in force until the end of 2024, when further renewals will be subject to future regulatory approvals. Malaysian Re's underwriting portfolio is increasingly diversified by geography, with approximately half of its gross premiums sourced from outside Malaysia in fiscal year 2023. Future product and distribution channel diversification is expected to be supported by strategic expansion into non-traditional products and specialty lines, as part of the company's ongoing business remodelling programme [dc9152a8].
In Bermuda, Mereo Insurance, a re/insurance start-up led by former AIG CEO Brian Duperreault, has received a preliminary credit assessment from AM Best. The assessment assigns Mereo Insurance a Financial Strength Assessment of A- pca (Excellent) and a Long-Term Issuer Credit Assessment of 'a-' pca (Excellent), with stable outlooks. Mereo Insurance plans to follow a balance-sheet agnostic approach, leveraging third-party capital alongside its own resources. The company aims to rapidly grow its premium base and improve operating profitability, with a focus on casualty and specialty lines. Mereo Insurance aims to unlock the potential of insurance and reinsurance investment and democratize access to specialized return streams [6aaf6778].
In Hong Kong, AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of 'bbb-' (Good) of Tugu Insurance Company Limited (TIC). The ratings reflect TIC's balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile, and marginal enterprise risk management (ERM). TIC's risk-adjusted capitalization is assessed at the strongest level and is expected to remain so over the short to intermediate term. The company's operating expense ratio remains high with a limited premium base. TIC is a small player in Hong Kong's non-life insurance market, and its ultimate parent company is PT Pertamina (Persero), a state-owned integrated oil and gas company in Indonesia. TIC's ERM is assessed as marginal, and key areas of concern include underwriting, investment concentration, strategic planning, and reserving capability. Positive rating actions could occur if TIC demonstrates consistent enhancement of its ERM and sustained improvement in its operating performance. Negative rating actions could occur if there is a material deterioration in the company's risk-adjusted capitalization [58361ebf].
AM Best's involvement in the insurance industry spans across different areas, including providing credit ratings to insurance companies. Their expertise and global presence make them a trusted source in the insurance industry [e0eed694].