On the morning of July 31, 2024, Vietnam National Reinsurance Corporation (VINARE) held a conference to review business activities for the first six months of the year 2024. The conference was attended by Mr. Nguyen Anh Tuan – Chairman of the Board of Directors, Mr. Pham Phan Dzung – Independent Member of the Board of Directors, Mr. Mai Xuan Dzung – Chief Executive Officer, representatives from the Board of Control, the Board of Management, and VINARE’s entire staff.

In the first half of 2024, Vietnam’s socio-economic conditions showed a clear positive recovery year-on-year, with the Gross domestic product (GDP) increasing by 6.42%. Alongside this economic growth, preliminary data from the Insurance Association of Vietnam indicated that the non-life insurance premium revenue for the first half of 2024 reached VND 39,056 billion, an increase of 11.9% year-on-year.

At this conference, VINARE also announced promising figures.

During the initial six months of 2024, VINARE’s total revenue reached VND1,696 billion, marking an 8.2% increase year-on-year and attaining 58.1% of the yearly target. Notably, the gross written premium amounted to VND1,607 billion, reflecting an 11.2% rise year-on-year and achieving 57.9% of the target. This remarkable performance can be attributed to the successful writing of new business in both local and overseas markets and increasing revenue from facultative accounts, particularly within the Engineering, and Property lines.

On the other hand, revenue from treaties in the Property, Engineering, and Cargo lines has been on a downward trend due to various factors. One of the major causes has been the initial implementation of Decree 67/2023, which mandates compulsory civil liability insurance for motor vehicle owners, compulsory fire and explosion insurance, and compulsory insurance for construction investment activities. Additionally, the slow pace of public investment fund disbursement and the challenges faced by insurance companies in managing import – export activities related to the Russian and Ukrainian markets have also contributed to this decline.

VINARE’s investment activities continued to ensure safety and efficiency, thanks to a balanced and rational allocation of investment capital, with investment profits reaching VND240 billion, fulfilling 55.8% of the annual plan, and pre-tax profit amounting to VND356.7 billion.

At the conference, managers of underwriting departments presented reports highlighting both the opportunities, challenges, as well as strategies to achieve the 2024 targets. CEO Mai Xuan Dzung and the Deputy CEOs shared insights and provided specific directives and guidings needed to fulfill the business objectives for the second half of 2024.

“I highly appreciate the efforts of all departments that have diligently and conscientiously provided excellent service for VINARE. Once again, I urge all VINARE employees to continue monitoring, staying focused, and striving to carry out all assigned tasks to fulfill our most important political mission: successfully achieving the objectives set for 2024. VINARE has been continuing to focus on improving working conditions and the quality of life for employees and will continue to do so going forward. On the occasion of VINARE’s 30th anniversary, we also pay tribute to all generations of employees in proper ways”, emphasized CEO Mai Xuan Dzung.

Regarding enhancing competitive capability and internal management, VINARE continues to focus on strengthening the system’s capacity to meet job requirements. This includes issuing regulations on the management and use of the IT system, completing risk management reports, fulfilling the internal audit plan for departments, and continuing to upgrade the Vioffice system and security measures.

As the information center of the market, VINARE has published the first issue of the Insurance-Reinsurance Newsletter (in bilingual Vietnamese-English) for 2024, marking the fifth consecutive issue in total. The Newsletter has received positive feedback from VINARE’s domestic and international partners and clients, highlighting VINARE’s position and image in the Vietnamese insurance market.

In the 2024 evaluation period, VINARE’s financial strength rating (FSR) continued to achieve a rating of “B++” (Good), and its issuer credit rating (ICR) was rated “bbb+” by  AM Best. AM Best also introduced a national scale rating (NSR), derived from international rating standards, which placed VINARE at “aaa.VN”, the highest rating in Vietnam, with a stable outlook.

At the mid-year review conference for 2024, Mr. Pham Phan Dzung – Independent Member of the Board of Directors – commended the impressive results achieved by VINARE in the first half of the year.

“On behalf of the shareholders and the Board of Directors, I highly appreciate the results achieved by VINARE. This outcome reflects the tremendous effort from the Leadership and all employees, and demonstrates the decisive, consistent, and unified direction within the corporation. I am confident that, under the direct guidance of the Chairman of the Board, the CEO, and the entire Board of Management, we will successfully accomplish the tasks assigned by the Board of Directors, as we approach the 30th anniversary of VINARE,” Mr. Pham Phan Dzung added.

In his concluding remarks at the conference, VINARE’s Chairman of the Board, Mr. Nguyen Anh Tuan, also praised the collective efforts of all employees and the impressive results achieved in the first half of the year. He highlighted that this success was a testament to the unwavering support of shareholders, particularly the long-standing major investors who have been integral to VINARE’s journey. The achievements were also a result of the effective and continuous collaboration among the Board of Directors, the Board of Management, the Board of Control, all departments, and the entire workforce. Furthermore, the strong support and cooperation from both domestic and international business partners were instrumental in reaching these milestones.

“Regarding the remaining tasks and responsibilities for the second half of the year, I urge the Board of Management and all VINARE employees to continue working closely together. As Mr. Trinh Quang Tuyen, former Chairman of the Board, once said, ‘We help each other and come together to work as one’. Given VINARE’s current position, role, and responsibility in the market, it is crucial for us to share and collaborate in finding solutions. VINARE has performed admirably but undoubtedly has the potential to achieve even greater results. Our focus remains on stability and sustainable development, ensuring internal stability, shareholder stability, and workforce stability, while adhering to legal regulations for steady growth”, emphasized Chairman Nguyen Anh Tuan.

As VINARE approaches its 30th anniversary – a significant milestone in our development – under the close guidance of the Board of Directors and the Board of Management, we are determined to exceed the targets set by the General Shareholders’ Meeting for 2024. Accordingly, the reinsurance premium revenue is projected to reach VND2,918 billion, the majority of which – VND2,778 billion coming from core business – and pre-tax profit expected to reach VND505 billion.