AM Best Affirms Fubon Vietnam's Credit Ratings With Stable Outlook 

KUALA LUMPUR, Nov 14 (Bernama) -- 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 (NSR) of aaa.VN (Exceptional) of Fubon Insurance Vietnam Co Ltd (Fubon Vietnam), with all credit ratings (ratings) carrying a stable outlook.

The global credit rating agency in a statement said the ratings reflected Fubon Vietnam’s strong balance sheet strength, adequate operating performance, limited business profile and appropriate enterprise risk management.

AM Best added that the assessment also incorporates rating enhancement from its parent company, Taiwan-based Fubon Insurance Co Ltd (Fubon Insurance), a leading non-life insurer in its domestic market.

The insurer’s balance sheet strength is supported by risk-adjusted capitalisation that is expected to remain at the strongest level over the medium term, based on Best’s Capital Adequacy Ratio. Other positive factors include low underwriting leverage and a conservative investment portfolio comprising cash and term deposits.

Fubon Vietnam is also considered to have good financial flexibility through the support of its parent company, despite its relatively small capital base. AM Best noted that heavy reliance on third-party reinsurance remains an offsetting factor, although counterparty risks are mitigated by reinsurers with generally strong credit quality.

The rating agency assessed the insurer’s operating performance as adequate, with a five-year average return on equity ratio of 6.9 per cent (fiscal year 2020-fiscal year 2024). While underwriting performance weakened in fiscal 2024 due to Typhoon Yagi losses and higher expenses, overall earnings stayed positive on the back of favourable investment income.

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Operating results showed improvement in the first nine months of 2025 following portfolio remediation efforts and continued strong investment returns.

Fubon Vietnam maintains a limited business profile as a small non-life insurer in Vietnam, relying heavily on business from Taiwanese corporations in the local market. The company nevertheless benefits from the strong brand recognition of Fubon Insurance.

The ratings continue to reflect the support, integration and strategic importance of Fubon Vietnam within the Fubon Insurance group as it expands its presence in Southeast Asia.

-- BERNAMA