AM Best has upgraded Hanoi Reinsurance Joint Stock Corporation’s (Hanoi Re) Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good), and revised the outlook to stable from positive.
The ratings agency also affirmed Hanoi Re’s Financial Strength Rating (FSR) of B++ (Good) and the Vietnam National Scale Rating (NSR) of aaa.VN (Exceptional), with stable outlooks for both.
AM Best noted that the ratings reflect Hanoi Re’s balance sheet strength, which it assesses as strong, alongside its strong operating performance, limited business profile, and appropriate enterprise risk management.
The ratings also consider rating uplift from Hanoi Re’s ultimate parent, HDI Haftpflichtverband der Deutschen Industrie V.a.G.
The Long-Term ICR upgrade reflects Hanoi Re’s strengthened balance sheet fundamentals in recent years.
AM Best expects Hanoi Re’s risk-adjusted capitalisation to remain at the strongest level over the medium term. In the 2025 fiscal year, capital requirements have increased following strong business growth and higher investment risk, though the company’s capital adequacy remains robust.
The company’s investment portfolio is of moderate risk, with investments mainly allocated to cash and term deposits, and the remainder held in non-rated corporate bonds and affiliated private equity investments.
Hanoi Re’s high retrocession dependence to support underwriting of large commercial risks is viewed as an offsetting factor, although reinsurance counterparty risk is partially mitigated by a high-quality panel of retrocession counterparties.
Meanwhile, AM Best views the company’s operating performance as strong, with investment returns expected to remain a key contributor to overall earnings.
