According to the Insurance Association of Vietnam, PVI Insurance accounted for 15.4 per cent of the market share in the first six months of 2021, taking the No.1 position in the non-life insurance market, followed by Bao Viet in second place with 15.3 per cent. This is the second consecutive quarter PVI Insurance takes the lead.
|PVI Insurance takes lead in non-life insurance market
The COVID-19 pandemic has had a serious impact on all aspects of social life. In this challenging context, PVI Insurance has managed to achieve a total revenue of VND5.445 trillion ($236.74 million) in the first six months of 2021, a 12.7 per cent increase on-year. With this figure, it has outperformed its target for the period by 14.4 per cent and reached 56.8 per cent of the annual plan. PVI Insurance's pre-tax profit reached VND415 billion ($18 million), equivalent to 64.2 per cent of the annual plan, an increase by 8.3 per cent compared to the same period in 2020. Not only the leader in original premium revenue, PVI Insurance also leads the non-life insurance market in charter capital, total assets, total revenue, profit by insurance business, pre-tax profit, and return on equity.
|Non-life insurance market six months of 2021 - Market share (per cent unit). Source: Insurance Association
While the second half of 2021 is proving even tougher than the first, PVI Insurance still targets a 12-month revenue of VND10 trillion ($434.8 million). This is a very ambitious goal, especially as the insurer aims to maintain its leading position in efficiency cultivated over the year. By pursuing an apt business strategy setting priority on efficient operations and development while maintaining flexibility to respond to market fluctuations, PVI Insurance is confident that it is on the right track and hopes to achieve its goals.
In the coming years, PVI Insurance's goal is to become the leading insurance company in Vietnam and in Southeast Asia. PVI Insurance is a wholly-owned subsidiary of PVI Holdings (HNX: PVI). Currently, HDI Global (Germany) is PVI's largest shareholder holding 45.9 per cent of the charter capital, while the International Finance Company (IFC) holds 6.29 per cent as another foreign strategic shareholder.
HDI Global plans to develop direct insurance in Southeast Asia through PVI Insurance. Meanwhile, the IFC is planning to cooperate with HDI Global to promote the development of PVI's corporate governance, risk management, and compliance policies and to adjust governance policies to ensure they are in line with international standards. HDI Global and IFC aim to strengthen PVI's position as the leading insurance company providing insurance solutions in the commercial and industrial sectors of Vietnam.
HDI Global SE is a company in the Industrial Lines Division of Talanx Group. Approximately 3,700 employees in this division generated gross written premiums of approximately €6.7 billion ($7.9 billion) in 2020.
The rating agency Standard & Poor’s has given Talanx Primary Group a financial strength rating of A+/stable (strong). Talanx AG is listed on the Frankfurt Stock Exchange in the SDAX. Since investing in PVI, HDI Global has played an important role in supporting it to expand its business operations in Southeast Asia.
PetroVietnam is the second-largest shareholder of PVI with 35 per cent of the shares. For the past 25 years, Petro Vietnam has been a major investor and important partner of PVI in key industrial insurance sectors.
The IFC – a member of the World Bank Group – is the largest global development institution focused on the private sector in developing countries. IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. IFC Asset Management Company, a division of the IFC, mobilises and manages capital to invest in businesses in developing and frontier markets.