PVI Holdings aims to amplify scale and revenue in 2024

May 28, 2024 - 10:11
The company’s consolidated revenue in 2024 is projected to be nearly VNĐ17.4 trillion (US$682 million), an increase of more than 8 per cent compared to 2023.
PVI Holdings' leaders at the Investor Meeting held on Friday. — Photo PVI

HÀ NỘI — PVI Holdings has set dual targets for 2024, boosting scale and revenue, to sustain its number one position in the market in terms of both charter capital and revenue.

The company’s consolidated revenue in 2024 is projected to be nearly VNĐ17.4 trillion (US$682 million), an increase of more than 8 per cent compared to 2023, with insurance revenue accounting for 92.5 per cent and financial revenue for 5.8 per cent.

The profit before tax is targeted at VNĐ1.08 trillion.

On May 15, PVI Holdings reported that consolidated revenue in the first quarter, including sales revenue, financial revenue and other revenue, reached nearly VNĐ6.5 trillion. This marked a 50 per cent increase over the same period last year, achieving 37 per cent of the annual plan.

Consolidated pre-tax profit rose to VNĐ444 billion, an increase of over 40 per cent year-on-year, with financial investment activities comprising 49.5 per cent of the profit structure.

PVI's total assets increased significantly by nearly 14 per cent year-on-year, reaching more than VNĐ30.7 trillion. Outstanding loans account for less than 3 per cent of total assets, with negligible borrowing costs. Cash flow from business activities exceeded VNĐ366 billion, nearly 1.5 times higher than the same period last year.

PVI has maintained its leading position in the non-life insurance industry for two consecutive years, holding 15.5 per cent market share in 2023, outsizing Bảo Việt Holdings at 14.3 per cent.

In 2024, PVI’s insurance segment continues to uphold its A- (excellent) ranking rated by AM Best with stable propect. In the reinsurance segment, AM Best upgraded Hanoi Reinsurance Corporation’s long-term credit outlook from stable to positive, adjusting its issuance rating to bbb level. AM Best also affirmed Hanoi Re’s financial streng at B++ (good) with stable prospect.

At PVI’s Investor Meeting held late last week, General Director of PVI Insurance Corporation, Phạm Anh Đức, emphasised that to sustain its ratings, the company must uphold its effective operations, maintain robust financial capabilities and bolster its risk management framework.

PVI Insurance has consistently hiked its charter capital in recent years, from VNĐ3.1 trillion in 2021 to VNĐ3.3 trillion in 2022 and VNĐ3.5 trillion in 2023, becoming the largest insurer in the market.

Đức said the company has submitted a proposal to the Ministry of Finance to raise its charter capital by VNĐ400 billion to VNĐ3.9 trillion, expressing hope that this plan will be finalised next month.

General Director of PVI Insurance Corporation Phạm Anh Đức speaks to investors at the meeting. — Photo PVI

PVI plans to distribute dividends in cash of at least 28.5 per cent in 2024. It agreed to pay a dividend rate of 32 per cent for 2023. Over recent years, PVI has sustained high dividend rates ranging from 20 per cent to over 30 per cent annually.

Highlighting the potential for market expansion, Đức underscored the industry's low market penetration rate, which currently stands at nearly 0.7 per cent – significantly lower than the regional average rate of 2.1 percent. With the projected market capacity expected to reach $4 billion by 2027, substantial opportunities await industry players.

Macroeconomic factors such as legal frameworks, increasing household purchasing power, and digital transformation are expected to further fuel industry growth.

“PVI Insurance will concentrate on niche markets to bolster its market share in the foreseeable future,” Đức said.

Divestment from Petrovietnam

Also at the meeting, Nguyễn Xuân Hòa, General Director of PVI Holdings, announced that the National Oil and Gas Group (Petrovietnam) will divest from PVI before the end of 2025 following the plan approved by the Government.

Currently, PVN owns 35 per cent of capital in PVI, and the initial steps for the divestment roadmap have been prepared. However, the divestment process depends on various factors and requires careful preparation and advice. Additionally, it will be influenced by favourable market conditions, Hòa said. — VNS