Profit growth setting up PVI Insurance for further gains

November 29, 2021 | 12:46
Despite mounting hardships, many businesses have weathered stormy times to post upbeat performance – and Vietnam’s most profitable non-life insurer, PVI Insurance, is a shining example.
PVI Insurance is continuing to go from strength to strength, demonstrated by its award-winning performances
PVI Insurance is continuing to go from strength to strength, demonstrated by its award-winning performances

Leveraging flexible adaption plans, timely introduction of synchronised measures for both retail and wholesale services, and accelerated sales of insurance products via e-commerce platforms in the second quarter and early third quarter this year – when most businesses on an equal footing saw a critical decline in revenues – meant that PVI Insurance still posted growth surpassing 10 per cent in such revenues.

More than that, this year the company has held onto the pole position in the domestic non-life insurance market in terms of market share and maintained its number one position in business efficiency as well as in other diverse financial criteria.

By virtue of cost efficiency, after the first three quarters of 2021, PVI Insurance posted $329.7 million in revenue, equalling 107.8 per cent of the nine-month business plan and 79.2 per cent of the full-year plan, showing a 10.3 per cent jump on-year.

With upbeat business performance and outstanding profit results during 2020-2021, the company became the single insurer making it onto the list of the top 50 most profitable businesses in Vietnam. The top 50 list, announced by Vietnam Report, aims to recognise and honour businesses with excellent profit results that have succeeded in maintaining a stable business performance during 2020-2021 despite the pandemic impacts.

The company is increasing its stature with its philanthropic activities
The company is increasing its stature with its philanthropic activities

Vietnam Report’s survey results showed that investment ramp-up into digital transformation is the top strategy of businesses.

Meanwhile, based on the latest PROFIT500 tally, which honours the 500 most profitable companies in Vietnam, PVI Insurance ranked 66th, increasing nine spots compared to 2020; and placed 133 out of assorted economic sectors, moving up 20 ranks.

The top five expectations of PROFIT500 companies in their digital transformation investment are pushing up revenue growth; supporting data analysis and management and tracing reports in a swift and accurate manner; cost-saving and enhancing business efficiency; improving labour productivity; and strengthening market competitiveness.

Sharing the same mindset with PROFIT500 peers, PVI Insurance has scaled up investment into its IT infrastructure to best avail of the advantages of e-commerce platforms, particularly with major trading partners, bringing a fresh experience to customers as well as optimising the efficiency of supervision and compensation activities.

Profit growth setting up PVI Insurance for further gains

PVI Insurance is among those pioneers of online insurance products and is one of a handful of businesses deploying e-certificates on compulsory liability insurance. The company has also retained its position in industrial insurance, securing 16.3 per cent growth in revenues compared to one year ago.

Aside from business development, PVI Insurance has made numerous contributions to Vietnam’s COVID-19 fight. It has closely obeyed the governance’s guidance on implementing the tasks of pandemic containment and business development since the problem emerged, and activities for pandemic prevention and containment have been deployed seamlessly to minimise impacts on daily operations.

The company has donated over $43,000 to the frontlines in the fight against COVID-19, working with the health sector’s trade union on providing insurance packages to medical staff.

Previously, PVI Insurance contributed around $87,000 to the country’s COVID-19 vaccine fund and frontline hospitals like Thong Nhat Hospital in Ho Chi Minh City, Hanoi Medical University Hospital, Central Pediatrics Hospital, Hospital 108 in Hanoi, the Health Department in Ho Chi Minh City and Hue, and more.

For these philanthropic activities, this year PVI Insurance won Best CSR Insurance Company in Vietnam as well as Best Non-Life Insurance Company in Vietnam, as awarded by the UK’s International Finance Magazine (IFM). The company is the only non-life insurer in Vietnam to have won an IFM award, having picked up the Best Insurance Company award in 2013.

Amid the current pandemic complexities in the country, accomplishing the business targets set out this year is proving a challenging task. PVI Insurance, however, has still placed ambitious targets, including reaching $434.7 million in revenues and maintaining its top position in operation efficiency to commemorate its 25-year anniversary.

According to a company representative, valuable experiences in coping with market vulnerabilities in 2020 and upbeat business outcomes in the first three quarters this year have showed that PVI Insurance is on the right development track and holding a firm trust in reaching the set targets.

By Ngoc Lan

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