On January 22, 2024, the high-level delegation from Talanx Group, along with its German subsidiary HDI Global SE (HDI) pays a noteworthy visit to Vietnam. Notably, the delegation engaged in productive discussions and collaborative efforts with key enterprises in Vietnam, including Vietnam Oil and Gas group (Petrovietnam) and PVI Joint Stock Company (PVI Holdings), renowned as major players in the financial and insurance sector in Vietnam.

Headquartered in Hanover, Talanx Group stands as a prominent German multinational financial services group, specialising in insurance, reinsurance and asset management. Ranking as the third-largest insurance group in Germany and one of European largest insurance groups based on premium income, Talanx plays a vital role in the global financial market.

HDI Global SE – an enterprise with its entire charter capital owned by Talanx Group – a leading industrial insurer in Germany, is currently a strategic shareholder holding the controlling stake in PVI at 51.49%.

Meanwhile, Petrovietnam (PVN) stands as a cornerstone in Vietnam's economic landscape, entrusted with overseeing and executing oil and gas activities within the country’s territory and investing abroad. After nearly half a century of development, Petrovietnam has achieved outstanding and comprehensive growth in both scale and depth, currently holding a notable 35% stake in PVI.

After 28 years of establishment and development, evolving from an internal insurance company within Petrovietnam with a modest capital of VND22 billion, PVI has undergone a series of transformative reforms, emerging as a professional finance-insurance institution with a robust presence in both the Vietnamese and regional markets. PVI has notched many industry-leading milestones, bolstered by governance and risk management support from strategic shareholders such as HDI Global SE, Petrovietnam and the International Financial Corporation (IFC).

The delegation features prominent figures, including Mr. Torsten Leue, CEO of Talanx Group and Dr. Edgar Puls, CEO of HDI Global SE and Member of the Board of Management of Talanx Group. This visit is expected to further strengthen the collaborative investment ties between the German insurance group and Petrovietnam, fostering stronger bonds within the Vietnamese insurance industry and solidifying the friendship and investment relationships between the two countries.

Mr. Torsten Leue (left), CEO of Talanx Group and Dr. Edgar Puls, CEO of HDI Global SE visit and work at PVI on January 22, 2024. — Photo courtesy of PVI Holdings

A model for Vietnam-Germany investment partnership

Vietnam is standing as Germany's foremost trading partner in Southeast Asia. In terms of investment, over the past many years, many famous German corporations such as Siemens, Metro, Mercedes-Benz, Deutsche Bank, B.Braun, HDI Global SE and Messer have established their long-term investments in Vietnam.

The World Business Outlook Report in Spring 2023 of the German Industry and Commerce in Vietnam (AHK) revealed that more than 90% of German businesses are inclined to either sustain or expand their investments and production in Vietnam, underscoring the allure and potential of the Vietnamese market for German investors.

The collaboration and investment between Talanx/HDI and Petrovietnam in PVI are recorgnised as a "strong partnership" between the two businesses of the two countries, yielding positive outcomes for both sides and serving as a lucrative investment partnership model between Vietnam and Germany. PVI's consistent growth in recent years serves as a clear validation of this model. Notably, with training support from Talanx, PVI has successfully executed compliance and risk management projects, positioning itself as the inaugural and sole entity to implement the new international financial reporting standards – IFRS 17 – in the Vietnamese insurance sector.

Mr. Nguyen Xuan Hoa (second from right), Standing Vice Chairman cum CEO of PVI Holdings, is honoured to be awarded for the overall results of the PVI system from the high-level delegation from Talanx Group and HDI Global SE. — Photo courtesy of PVI Holdings

Over the last three years, PVI has undergone significant internal restructuring, implementing a targeted profit plan that prioritises operational efficiency over revenue. Leveraging shareholder consensus and effective international management, PVI has enhanced performance and financial indicators. With support from HDI, PVI has adopted a research lab model to harness the most effective products from Talanx on a global scale. Backed by a well-trained team and robust remuneration policies, PVI has demonstrated improved performance, positioning itself as a leading insurance company in Vietnam and maintaining steady growth even amidst challenges caused by the COVID-19 pandemic.