Trần Thu Hà, Director of the Secretariat and Public Relations Department, presents the company's results at PVI’s Investors’ Meeting on Thursday. — Photo courtesy of PVI |
HÀ NỘI — PVI, the leading player in Việt Nam’s non-life insurance market, is on track to reach a total revenue of VNĐ20 trillion (US$787.4 million) by the end of 2024, with ambitious plans to become a billion-dollar company on the stock market.
Its consolidated pre-tax profit is projected to hit VNĐ1.08 trillion.
The company currently holds an 18.2 per cent market share, maintaining its position as the largest market shareholder and the only one to see an increase in market share this year.
In the first three quarters of 2024, PVI reported impressive growth in key areas, including a 27 per cent increase in gross insurance premiums, which is double the average market growth.
Its consolidated revenue for the first nine months exceeded VNĐ16.7 trillion, up 46 per cent year-on-year. However, the consolidated pre-tax profit reached only VNĐ979 billion, down 6 per cent year-on-year, due to an increase in provisions for claims arising from Typhoon Yagi.
PVI has achieved significant milestones this year, including two capital increases, bringing its charter capital from VNĐ3.3 trillion to VNĐ3.9 trillion, solidifying its market leadership.
It is also the only insurance company in Việt Nam to have received an A- rating (Excellent) from AM Best, further cementing its credibility.
Market potential
The non-life insurance sector in Việt Nam holds substantial growth potential.
According to the government’s market development strategy, the insurance industry aims to reach 3-3.5 per cent of GDP by 2025, but the current figure stands at only 2.2 per cent. This figure is notably lower than the industry average in the ASEAN region, which is 3.35 per cent, and well behind the average for Asia at 5.37 per cent and the global average of 6.3 per cent.
This presented significant opportunities for expansion, with a projected 8.3 per cent annual growth rate for the sector over the next five years, said Trần Thu Hà, Director of the Secretariat and Public Relations Department at PVI’s Investors’ Meeting on Thursday.
The non-life insurance market has recovered significantly from a low 3-per-cent growth rate in 2023, with nine-month premium revenue growth reaching 12.8 per cent compared to the same period last year. The top six companies all showed positive growth, including Bảo Viet (5.2 per cent), Bảo Minh (14.3 per cent), MIC (7.8 per cent) and Vinashin (14.7 per cent).
PVI is playing a key role in driving industry growth, with gross insurance premiums rising by 27 per cent in the first nine months of 2024, significantly outperforming the market.
Hà said the company’s leadership had been particularly evident in the reinsurance market, where PVI continued to dominate. Its reinsurance revenue grew by 115 per cent in the same period, reflecting its strong market position.
As for payments due to losses from Yagi, PVI has disbursed and advanced VNĐ70 billion as of December 6, according to Hà.
Despite a reduction in net profit due to rising claim costs, primarily from the impact of Typhoon Yagi, PVI’s robust financial management has enabled it to weather the challenges. The company’s reinsurance strategy, which involves a solid partnership with top-tier international reinsurers, has been crucial in managing large and complex risks. This expertise allows PVI to remain competitive, particularly in the reinsurance sector, where the company has outpaced domestic competitors.
Looking ahead to 2025, PVI aims to strengthen its market leadership through a series of strategic initiatives, including digital transformation, sustainable development, and enhanced risk management practices. The company is also planning further capital increases during the 2025-2029 period to maintain its competitive edge. — VNS