AM Best has placed under review with developing implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of 'bbb' (Good) of PVI Reinsurance Joint-stock Corporation (PVI Re) (Vietnam).
These Credit Rating (rating) actions follow an announcement made by HDI Global SE on 23 June 2021 stating that it has partially divested its shareholding in PVI Holdings, the immediate parent of PVI Re, to comply with a regulatory condition imposed by the State Securities Commission of Vietnam.
As a result of this shareholding change, the ultimate ownership of PVI Holdings' total charter capital by HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G. or the HDI group) has fallen below 50%.
As a majority-owned subsidiary of PVI Holdings, the ratings of PVI Re have been placed under review with developing implications as AM Best needs to assess the impact of the recent, and any further near-term changes expected in the ultimate ownership of the company by the HDI group. As the ratings of PVI Re currently incorporate rating enhancement to reflect the level of ownership, integration and support from the HDI group, AM Best will need to give further consideration to PVI Re's eligibility for rating enhancement prospectively.
The ratings of PVI Re will remain under review until AM Best can fully assess the impact of recent and any further near-term changes in ownership, as well as evaluate HDI group's future plans for the company.
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 AM 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 AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
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