Ladies and gentlemen,

Distinguished guests,

First of all, on behalf of the BOM, BOD and all staff of Vietnam National Reinsurance Corporation (VINARE), I would like to welcome all distinguished guests attending the Credit rating announcement ceremony of our Corporation today.

Distinguished guests,

Vietnam National Reinsurance Corporation (VINARE) as the first professional reinsurer in Vietnam insurance market was established in September 1994 and officially started operation since January 1^st 1995. Our main functions are to do reinsurance business in the local and overseas market, to support local insurers in reinsurance placement, to help increase the retention of local insurance market through reinsurance, and to engage in financial investment.

19 years has passed since the opening ceremony and we are proud to go through some remarkable milestones:

–       After the first five years in operation, VINARE was awarded with State’s Labour Order Third Class and after ten years the State’s Labour Order Second Class.

–       In 2005, VINARE was successfully equitized. Besides SCIC, 13/14 non-life insurers operating in Vietnam insurance industry became shareholders of VINARE with commitment for comprehensive cooperation in terms of business exchange, technology, information, training, etc.

–       In March 2006, VINARE was listed on Hanoi Stock Exchange, being one of the first ten listed companies.

–       In 2008, VINARE made a private issuance to Swiss Re, one of the leading reinsurance groups in the world, which then becomes VINARE’s sole foreign strategic partner. With 25% stake, Swiss Re commits to provide VINARE with comprehensive technical supports to enhance VINARE’s position and competitiveness in the global market.

–       In the fifteenth year of operation, we were very proud to receive the State’s Labour Order First Class.

The period from 2008 – 2012 was a challenging time for VINARE with the  economic downturn and the global financial crisis. Nevertheless, VINARE still maintained an average growth of revenue of 10.5% per year (in 2012, gross written premium and investment revenue totalled VND2,083 billion), and average growth of pre-tax profit of 11.3% per year (in 2012, pre-tax profit (including result from pilot agriculture insurance) was VND313.6 billion). The amount of premiums retained by VINARE and via  retrocession to local partners were approximately VND1,000 billion each year. Total capital invested in the economy was about 3,000 billion per year. In 2013, VINARE expects to achieve pre-tax profit target of VND360 billion, an increase of 20% in comparison with 2012.

Starting from 2012, VINARE was one of three leading players that was assigned by Prime Minister to deploy the Pilot Agriculture Insurance Program. The Pilot Program has shown initial positive results and has contributed greatly to the social security policy of the Party and Government.    

Our equity capital has grown from the initial amount of VND 40 billion to VND2,320 billion and total assets reached VND4,212 billion according to consolidated financial statements ending 2012, with a Return on Equity of 12%. 

Our mission is to become the leading professional reinsurer in the local and regional insurance market, with the commitments to bringing highest benefits to shareholders, providing value added services and sustained solutions for the market and our partners, and assuming social responsibilities.

In our best efforts to achieve the strategic goals, we have taken several measures to enhance our competitiveness towards international standards and to extend our operation in the region and over the world, for instance reorganisation, human resource development, IT system, enhancing our product capability, capital management capability, operational risk management, etc.

VINARE is also aware that an internationally recognised credit rating is an indispensable condition for each company in the global integration process and particularly crucial for a company doing reinsurance business. To have an international credit rating and maintain the rating level is considered a major goal in VINARE’s business operation.

Ladies and gentlemen,  

After a long time and with much dedicated efforts from all of the staff, we are very delighted to announce: On November 1^st 2013, international rating agency A.M. Best assigned Vietnam National Reinsurance Corporation with a financial strength rating of B++ (Good) and issuer credit rating of “bbb”, the outlook is stable. According to A.M. Best, the ratings reflect VINARE’s solid risk-based capitalization, consistent operating performance, sound liquidity and our strong presence in Vietnam’s non-life reinsurance market.

The achievement of this credit rating is indeed a high-profile landmark in our history of operation, reflecting VINARE’s competitiveness in the international market. The rating is expected to bring many advantages to VINARE in materializing our strategic development goals: enhancing competitiveness, expanding underwriting market and business exchange effectively, increasing revenue, improving capability to approach capital market, enhancing liquidity according to international standards, enhancing transparency and trust for investors, receiving objective comments from outsiders and especially from international rating agencies for VINARE’s operations, etc. 

Distinguished guests,

VINARE is fully aware of the fact that getting an international credit rating is honourable, but to maintain the rating and aim to get a higher rating is a big challenge to VINARE. However, we strongly believe that, with the right business strategy and a strong foundation that has been built up during our operation process, with increasingly enhanced and developed human resources, with strong cooperation and support from shareholders, local and overseas business partners, VINARE will soon materialize our strategic development targets.

On this occasion, on behalf of the Board of Directors and all VINARE staff, I would like to express my most sincere thanks to Ministry of Finance, SCIC, Swiss Re, BOM & BOC of VINARE for your comprehensive support for VINARE’s business activities.

I would like to thank A.M. Best for your cooperation and objective evaluation of VINARE’s business activities. Thanks to all shareholders and especially to our business partners for your cooperation and companionship with VINARE during our development process.

My thanks to all media agencies who have come and reported about this event.

Lastly, I would like to sincerely thank the Board of Directors and all VINARE staff for your united strength and continuous efforts which have contributed to our achievements today.

Thank you for your attention and wish you health, wellbeing and prosperity./.