Insurance shareholders push for higher dividends in 2026

At the 2026 AGM of the Petrolimex Joint Stock Insurance Company (PJICO) on April 15, several investors proposed increasing dividend payments to enhance the appeal of the company’s stock.

Shareholder Trinh Minh Phuc, one of PJICO’s former leaders, acknowledged the company’s efforts during the challenging year 2025, but argued that the current 12 per cent dividend policy should be improved over the long term to remain competitive with the broader market.

Similarly, a representative of a shareholder who has held PGI shares for 30 years noted that PJICO currently offers the lowest dividend payout within the Petrolimex Group ecosystem and should improve this in the coming period.

Beyond PJICO, shareholders of Military Insurance Corporation (MIC) also want the company’s management to raise dividends above current levels. MIC paid a 2024 dividend of 10 per cent, including 5 per cent in cash and 5 per cent in shares.

In 2025, increasingly complex natural disasters drove insurance claims sharply higher across the market, estimated at $3.7 billion, up 15 per cent compared to 2024.

Non-life insurers were hit hardest, due to rising compensation for property, motor vehicles and construction works.

Despite the volatility of 2025, although revenue growth did not reach double-digit targets, PJICO maintained business momentum and still delivered a 12 per cent dividend as committed to shareholders.

Pham Thanh Hai, chairman of PJICO’s Board of Directors, said that at many points last year, bank deposit rates hovered around 4-5 per cent per year, yet the company still ensured a 12 per cent dividend payout, demonstrating efforts to balance shareholder interests with financial capacity while retaining earnings for future growth.

According to Hai, PJICO has consistently allocated substantial resources to dividend payments over many years.

“In the 2021-2025 period, PJICO recorded after-tax profit of approximately $50 million and paid about $34 million in cash dividends, equivalent to roughly 67 per cent. The value of cash dividends during this period increased about 1.6 times compared with the previous period,” he said.

High-dividend stocks have a particular appeal, but not all companies can sustain high payouts annually.

In the market, apart from Post and Telecommunication Insurance (PTI) and Aviation Insurance (VNI, now renamed DBV Insurance), which have refrained from paying dividends for many consecutive years, most other insurers such as PVI, Bao Viet Holdings (BVH), ABIC (ABI), PVI Re (PRE), Vinare (VNR), PJICO (PGI), MIC and BIDV Insurance (BIC) have maintained double-digit dividend payouts (from 10 per cent upward) in recent years.

Currently, PVI Holdings (stock code PVI), the parent company of PVI Insurance – the leading non-life insurer by market share – stands well ahead of peers in dividend payouts.

Its planned dividend ratio for 2025 is 33 per cent – including 23 per cent in cash and 10 per cent in shares – equivalent to a payout of nearly $31 million, accounting for up to 96 per cent of distributable after-tax profit for the year.

This marks the 11^th consecutive year that PVI has paid high cash dividends of at least 20 per cent, and represents the third-highest dividend payout in the company’s history.

Although PVI does not directly conduct insurance business, its controlling stakes in PVI Insurance (non-life insurance) and Hanoi Reinsurance Joint Stock Corporation (Hanoi Re, operating in reinsurance) mean it is still classified within the insurance stock group.

In 2026, many insurers continue to plan double-digit dividend payouts. For instance, PVI targets a 30 per cent dividend (20 per cent in cash and 10 per cent in shares), while MIC, VNR and BIC aim for 10-12 per cent, similar to 2025 levels.

In practice, high-dividend stocks are particularly attractive because they provide a sense of tangible returns. However, dividend payments depend on multiple factors, including business strategy, annual performance and market conditions in each period. Therefore, not all companies can sustain high dividend payouts every year.

For example, at Vinare, during the 2020-2025 period, this reinsurer maintained a stable dividend policy, primarily in cash at an annual rate of 10 per cent, combined with share dividends to increase capital.

Previously, in 2019, Vinare paid a cash dividend of 20 per cent – the highest level since 2014 and significantly above the planned 12 per cent for that year.

Private insurers must integrate advanced tactics Amid modest insurance penetration and early-stage digital adoption, Vietnam’s insurance sector stands at a pivotal turning point. Dr. Tran Phuoc Huy, chief of office at the School of Banking and Finance under the National Economics University, spoke with VIR’s Khanh Linh about the emerging opportunities for private insurers.

Insurers weather Q4 shock to deliver solid growth Despite a sharp fourth-quarter profit slump caused by rising disaster-related claims, Vietnam’s listed insurers closed 2025 with strong full-year growth.

Non-life insurance competition heats up as smaller players gain ground Vietnam’s non-life insurance market is seeing intensifying competition in early 2026, as fast-growing smaller players challenge incumbents, reshaping rankings and sustaining the sector’s role as a key growth driver.