Insurer Bảo Việt forecasts lower profit, similar revenue in 2020

June 30, 2020 - 14:33

Post-tax profit is projected to drop 5 per cent year-on-year to VNĐ1.18 trillion.


Insurance-finance group Bảo Việt Holdings' headquarters in Hà Nội. — Photo

HÀ NỘI — Insurance-finance group Bảo Việt Holdings (HoSE: BVH) expects little change for its revenue this year, but post-tax profit is expected to decline.

Total revenue in 2020 is forecast to inch up 0.2 per cent year-on-year to nearly VNĐ45 trillion (US$1.94 billion).

However, post-tax profit is projected to drop 5 per cent year-on-year to VNĐ1.18 trillion.

In 2019, the insurance group earned VNĐ44.87 trillion in total revenue and post-tax profit was VNĐ1.24 trillion.

In the first six months of the year, Bảo Việt earned total revenue of VNĐ22.17 trillion, which accounts for a half of the full-year plan, CEO Đỗ Minh Trường said at the annual shareholders’ meeting on Monday.

According to the board of directors, this year’s earnings are projected based on the expected risk provision of 3.35 per cent and 3.45 per cent for insurance contracts that were signed before and after February 16, 2019.

This year's performance will be affected by the COVID-19 pandemic, the CEO said.

Bảo Việt will also pay an 8 per cent cash dividend for 2019's performance, with shareholders receiving VNĐ800 per share.

The dividend is worth VNĐ594 billion and payment will be extracted from the firm’s full-year post-tax profit.

In 2020, the group expects to spend half of its full-year post-tax profit paying the cash dividend.

In mid-December last year, Bảo Việt sold more than 41.4 million shares in a private deal to Japanese corporation Sumitomo Life for VNĐ4 trillion.

The deal meant the Japanese firms increased its stake in Bảo Việt to 22.09 per cent from 17.48 per cent and allowed the Vietnamese side to increase its charter capital by VNĐ1.3 trillion to VNĐ7.42 trillion.

As of May 31, some VNĐ850 billion worth of capital had been distributed to member firms to enlarge their capital and VNĐ13.7 billion had been spent on facility upgrades.

Bảo Việt shares on Monday fell 3.7 per cent to end at VNĐ45,750 apiece. — VNS