Vietnam insurer MIC earns B++ credit rating, sets sights on becoming regional leading digital insurer

Vietnam’s Military Insurance Corporation (MIC), listed on the Ho Chi Minh Stock Exchnage as MIG, has secured a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb” (Good), both with a stable outlook, from global credit rating agency AM Best.

International ratings underscore strength of Vietnamese insurer

The US-based credit rating agency specializes in the insurance sector, with over 125 years of operation and a presence in more than 100 countries. Its ratings are widely regarded as an “international credibility passport” for insurers with strong financial foundations, transparent governance, and the capacity to fulfill long-term commitments.

MIC’s credit ratings from AM Best mark more than just a milestone. They serve as a clear testament to the company’s financial strength, risk management capabilities, and adaptability to the increasingly demanding landscape of Vietnam’s non-life insurance market.

According to the AM Best report, MIC’s balance sheet strength assessment is underpinned by the strongest level of risk-adjusted capitalization, 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 conservative investment strategy, with the majority of investments held in cash, term deposits, and fixed-income securities.

Exposure to large risks and natural catastrophes is mitigated through MIC’s reinsurance program, whereby reinsurance counterparties are generally of good credit quality, the report says.

For operational efficiency, AM Best assesses MIC’s performance as “adequate”, with a five-year average return-on-equity ratio of 11.2% and a combined ratio of 98.5% (2020-2024). Although the company posted a loss in 2024, mainly driven by super typhoon Yagi and other one-off factors, it reported a return to profitability in Q1/2025.

“Prospective business expansion in wholesale lines is expected to support an improvement in overall results,” according to AM Best.

In H1/2025, MIC completed a charter capital increase to VND2.01 trillion ($76.88 million), reinforcing its capital base and solvency margin. Gross written premiums reached VND2.63 trillion ($100.59 million), up 2.2% year-on-year, securing its position among the top four non-life insurers by market share.

Pre-tax profit surged 31.1% to VND231.5 billion ($8.85 million). The combined ratio was held at 92.6%, underscoring improved underwriting efficiency, cost optimization, and risk management.

Digital transformation, sustainable growth: MIC’s long-term competitive edge

Alongside its solid financial footing, MIC is setting itself apart with a comprehensive digital transformation strategy - a factor AM Best specifically highlighted during its assessment.

The company operates a tech-integrated insurance model across its entire value chain, from distribution, policy issuance, and risk management to claims settlement. All functions run on a modern core insurance platform that enables multi-channel connectivity, real-time processing, and an optimized digital customer experience.

MIC’s centralized data utilization not only enhances operational efficiency but also strengthens its forecasting and risk portfolio control capabilities - key to meeting increasingly stringent insurance governance standards in the digital era.

The AM Best report says MIC ranked fourth by gross premiums written in Vietnam’s non-life insurance market, with approximately 6.3% market share in 2024.

The company’s premium mix is moderately diversified with key business lines being motor, health, personal accident, and property and engineering insurance. MIC has a vast distribution network, including bancassurance, internal salesforce, and external agents. Furthermore, MIC benefits from both common branding and preferential access to customers of parent bank (MB Bank).

“AM Best’s ratings serve as an objective and credible validation of MIC’s financial strength, governance effectiveness, and international integration strategy,” said MIC general director Dinh Nhu Tuynh.

“This is not only a key milestone but also a launchpad for MIC to pursue robust, transparent growth and move toward becoming one of the region’s leading digital insurers.”

Reaching further from solid foundation

As Vietnam’s insurance market edges closer to international standards in governance and auditing, the high credit ratings awarded to local player MIC by AM Best stands as a testament to the company’s consistent, long-term development strategy.

This is not only an achievement, but also a strong commitment to transparency, accountability, and sustainable competitiveness from MIC - one of Vietnam’s insurance brands expanding its regional footprint.

Alongside this, the bbb Issuer Credit Rating reflects MIC’s solid credit profile, signaling its eligibility to raise long-term capital, pursue financial partnerships, and scale up investments in projects with high standards of transparency and auditing.

Financial experts note that this is a tough benchmark to achieve, especially for a domestic non-life insurer operating in an increasingly fragmented and competitive market like Vietnam.