AM Best Affirms Credit Ratings of Military Insurance Corporation
AM Best has affirmed the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Rating of “bbb” (Good) and the Vietnam National Scale Rating of aaa.VN (Exceptional) of Military Insurance Corporation (MIC) (Vietnam). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect MIC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in a neutral impact from MIC’s ultimate parent company, Military Commercial Joint Stock Bank (MB).
MIC’s balance sheet strength assessment is underpinned by the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). MIC benefits from good financial flexibility, with a demonstrated track record of capital injections over the last 10 years. In addition, the company has a prudent investment strategy, with the majority of its investments held in cash, term deposits and fixed-income securities. Exposure to large risks and natural catastrophes is mitigated in part through MIC’s reinsurance programme. Furthermore, reinsurance counterparties are generally of good credit quality.
