On April 20th, 2023, Vietnam National Reinsurance Corporation (VINARE) held the Annual General Meeting of Shareholders 2023, where all key issues were passed with the majority of votes.
The total revenue in 2022 reached VND 2,969 billion, in which gross written premium accounted for VND 2,368.8 billion, achieving 107.1% of the year’s target. Notably, premium volume from core business grew by 14.1% year-on-year, exceeding the management’s expectations. With effective risk management, strict adherence to underwriting guidelines and rational allocation of investment capital, VINARE has accomplished 101.14% of the profit target for 2022. The pre-tax profit reached VND 439.3 billion, achieving 101.1% of the target and increasing by 7.7% year-on-year.
In 2022, VINARE prioritized internal management and enhanced core competencies such as Enterprise Risk Management (ERM) framework, pricing tools and conducting internal audits. VINARE also approved and implemented the ESG (Environment, Social, Governance) plan. With a clear understanding of its role in environmental protection and community development and the demand for ESG standards in the international business environment, VINARE is the first enterprise to undertake this initiative.
In 2002, VINARE also focused on working closely with partners to develop new products that meet market demand, reuniting market strengths through a Reinsurance Conference and the publishment of a bilingual Vietnamese-English Insurance-Reinsurance Newsletter and organizing courses for partners.
In addition, VINARE has also concentrated on corporate culture by issuing the Code of Conduct and Professional Ethics, as well as several vital regulations regarding personnel and organizational activities. We also upgraded the core business management system (ViCore) and have implemented an electronic document management system in line with digitizing office operations (ViDoc).
In the review period 2022, VINARE’s financial strength rating (FSR) is at B++ (Good), and the issuer credit rating (ICR) is at “bbb+” (by AM Best). VINARE is one of the first two insurance/reinsurance companies in Vietnam’s insurance market to have its financial strength rated by an international rating agency since 2013 and continuously maintains the rating of B++ since then, reflecting its strong financial position and good operating results.
In 2022, VINARE achieved remarkable accomplishments, including the Certificate of Merit from the Ministry of Finance for outstanding business performance in the 2020-2021 period, Top 10 Outstanding Brands and Strongest Brands of Vietnam for 2021-2022, Top 10 listed companies with good corporate governance in the 2021-2022 evaluation period, and Top 500 Most Profitable Enterprises in 2022. In addition, VINARE was honored as one of the top 10 listed companies with the most outstanding annual reports in 2022 in the group of mid-cap companies on the stock market. These results are clear evidence of the practical efforts made by the Board of Directors, Board of Management, and all staff members of VINARE throughout the past year.
Representing the major shareholder Swiss Re, Mr. Seng Lee – Regional Head of Principal Investments and Acquisitions Asia Pacific, congratulated on the impressive results and affirmed that Swiss Re would continue to accompany VINARE in the future, assisting VINARE in enhancing its competitiveness and reputation in domestic and international markets. Swiss Re is one of the world’s leading reinsurers, with over 160 years of establishment (founded in 1863) and consistently maintains an A+ rating by AM Best for many years. As of December 31, 2022, its total shareholder equity was over USD 23 billion, total assets were over USD 170 billion, and its 2022 revenue was USD 48 billion. Swiss Re is currently the second largest foreign strategic shareholder after acquiring a 25% stake in VINARE in January 2008.
In 2023, the global economy is predicted to face many challenges, with international economic growth drivers showing signs of weakening and being difficult to predict. In Vietnam, the National Assembly has set a target of 6.5% GDP growth for 2023. However, Q1 2023 GDP only increased by 3.32% compared to last year’s period.
Although the outlook for the domestic market is still hard to tell, coupled with unfavorable forecasts for the global economy, VINARE has set the following growth targets in 2023:
- The gross written premium is VND 2,468 trillion, increasing 4.2% year-on-year. VINARE will focus on core business in 2023 with a minimum revenue growth target of 10% compared to the previous year.
- Pre-tax profit is VND 460 billion, increasing 5.1% compared to 2022. The dividend ratio for 2023 is expected at 12% (on the new charter capital of VND 1,658 trillion)
- VINARE will continue to improve the combined ratio, increase the efficiency of business operations, accumulate additional financial capacity, and contribute to upgrading its credit rating from B++ to higher levels in the coming years.
As one of the leading reinsurers in Vietnam, VINARE will continue to enhance its capacity to provide added value to the market, such as risk management, training, products, reinsurance programs, and sustainable development solutions.
Mr. Nguyen Anh Tuan – Chairman of the Board of Directors, pledged that VINARE would continue to closely coordinate with shareholders, strengthen and expand relationships with partners both domestically and internationally, and provide close guidance and support to the BOD in successfully achieving the goals for 2023 as approved by the shareholders’ meeting, ensuring the efficient and sustainable development of VINARE and the benefits of shareholders, employees and VINARE’s partners.
Here are some photos in AGM