BVH insuring for the future

The state-owned firm said its consolidated pre-tax profit in the three months to March 31, this year rose 9 per cent, or almost VND28 billion ($1.35 million), to VND345 billion ($16.67 million) as compared with 2010’s Q1.

That result was mainly driven by strong jump in general insurance business, which up some 52 per cent to VND107 billion ($5.17 million) from last year’s Q1. According to BVH, premium of general insurance in this quarter had been up nearly fifth year-on-year.

However, life insurance sharply reduced 15 per cent to VND130 billion ($6.28 million) in pre-tax profit from last year’s VND149 billion ($7.19 million). This decline significantly dragged down the firm’s growth, despite the 21 per cent jump in consolidated revenue to VND3.35 trillion ($161.83 million).

Combined revenues from core insurance operations still rose 13 per cent to VND2.18 trillion ($105.31 million).

Profits from finance services advanced modestly 11 per cent to VND81 billion ($3.91 million), while banking services up 8 per cent to VND25 billion ($1.21 million).

“That result was satisfactory and inline with expectations,” said Hoang Viet Ha, spokesman for BVH. “We achieved double-digit revenue growth in our core insurance businesses and out banking operations continued to grow strongly.”

Bao Viet planned a modest pre-tax profit growth for this year of 15 per cent, or VND1.4 trillion ($67.63 million), early this year given the current turbulence in the financial markets. The Q1 results contributed to 24 per cent of that annual target.

The net assets of the group were VND11.58 trillion ($559.42 million), up 9 per cent. The share hit the floor, or down 4.9 per cent, on Ho Chi Minh Stock Exchange in Monday’s session to VND74,000 ($3.57).