A customer at office of BIDV Insurance Corporation (BIC). After generating positive profits from their insurance activities in 2023, BIC decided to distribute dividends, setting it at 15 per cent and maintaining this level for 2024. Photo BIC

HÀ NỘI During this year's shareholders' meeting season, several insurance companies opted to pay dividends at a rate of 10 per cent or higher but there were still others that chose not to distribute dividends.

After generating positive profits from their insurance activities in 2023, BIDV Insurance Corporation (BIC) decided to distribute dividends, setting it at 15 per cent and maintaining this level for 2024.

In 2023, BIDV Insurance exceeded the consolidated pre-tax profit plan by over 19.6 per cent, reaching VNĐ574 billion, and achieved a consolidated after-tax profit of VNĐ449.8 billion. Consequently, the company maintained its position among the top three non-life insurance enterprises in terms of profitability ratio.

Trần Hoài An, the General Director of BIDV Insurance, announced that the dividends for 2023 would be paid in cash in 2024, while dividends for 2024 would be paid in 2025. The form of payment, whether in cash or shares, would depend on the actual business results in 2024 and would be subject to approval at the 2025 shareholders' meeting.

Regarding the 2024 business plan, the shareholders' meeting approved the objective of achieving a consolidated pre-tax profit of VNĐ600 billion.

As for Bảo Minh Joint Stock Corporation (BMI), the Board of Directors planned to propose a dividend payment plan of 15 per cent for 2023, with 5 per cent in cash and 10 per cent in shares. Cash dividends were scheduled to be paid in the second quarter of 2024.

Petrolimex Insurance Joint Stock Corporation (PGI) maintained the same dividend rate as in 2022, which was 12 per cent in cash. In 2023, PGI was expected to achieve a pre-tax profit of VNĐ283.6 billion, surpassing the plan by 10.9 per cent and increasing by 12.3 per cent compared to 2022.

Military Insurance Company (MIG) decided to distribute dividends at a rate of 10 per cent in cash for 2023. Despite a 10 per cent decrease in original insurance premium revenue, MIG's pre-tax profit reached VNĐ352 billion, indicating a 76 per cent increase compared to 2022, thanks to elevated revenue from financial activities.

Meanwhile, Việt Nam National Reinsurance Corporation (VNR) planned to distribute dividends at a rate of 20 per cent for 2023, with 10 per cent in cash and 10 per cent in stocks.

Agriculture Bank Insurance Joint-Stock Corporation (ABIC) paid dividends at a rate of 51.34 per cent for 2023, surpassing the initial plan of 20 per cent, with 41.34 per cent in stocks and 10 per cent in cash.

Nguyễn Tiến Hải, the Chairman of the Board of Directors of ABIC, explained that after studying leading companies worldwide, ABIC found that issuing dividends in shares was a trend in developed countries. Transitioning from cash dividends to shares would enhance the business's asset value and financial capacity, while cash dividends would have the opposite effect, diminishing financial capacity.

PTI and VNI declined to pay dividends.

Postal Insurance Joint Stock Corporation (PTI) decided not to distribute dividends in 2024 due to reduced revenue and profit plans compared to the performance levels in 2023. Although PTI was projected to achieve an after-tax profit of over VNĐ252 billion in 2023, the loss of VNĐ347.4 billion in 2022 prevented dividend distribution.

According to PTI leaders' assessment, organisational reforms and system rearrangements since 2022 would lead to improved business results in 2023, including significantly decreased insurance business costs. The total cost of insurance business operations in 2023 was VNĐ4.5 trillion, reflecting a 14.68 per cent reduction equivalent to VNĐ786 billion compared to 2022.

Aviation Insurance Joint Stock Corporation (VNI), with a modest profit of VNĐ24.6 billion achieved in 2023, decided not to distribute dividends to retain capital for business operations. VNI has refrained from paying dividends for seven consecutive years, starting from 2017 till now. VNS