On July 24th, 2023, Vietnam National Reinsurance Corporation (VINARE) organized a conference to review business activities for the first six months of the year. The conference was attended by Mr. Nguyen Anh Tuan – Chairman of the Board of Directors, Ms. Nguyen Thi Quynh Huong – Member of the Board of Directors, Mr. Mai Xuan Dung – Chief Executive Officer, Board of Management, Board of Control, and all VINARE staffs.
During the initial six months of 2023, VINARE’s total revenue reached VND1.567 trillion, marking a 21.7% increase year-on-year and attaining 63.5% of the year target. Notably, the gross written premium amounted to VND1.430 trillion, reflecting a 32.7% rise year-on-year and achieving 63.1% 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 treaties, particularly within the Engineering and Hull business lines. However, it’s essential to acknowledge the prevailing sluggish market growth trend, as revenue in traditional lines such as property and marine cargo exhibited signs of stagnation in the domestic market.
VINARE’s investment activities continued to uphold safety and efficiency through well-balanced and rational allocation of investment capital, resulting in an investment profit of VND275 billion, equivalent to a remarkable 205% increase y-o-y. The company’s overall pre-tax profit reached VND367.4 billion, showcasing a robust growth of 73.2% year-on-year.
During the conference, the underwriting department managers presented comprehensive reports, which outlined their accomplishments, identified favorable conditions, discussed challenges faced, and proposed solutions to meet the objectives of the 2023 plan. CEO Mai Xuan Dung and Deputy CEO Nguyen Manh Linh provided valuable insights and directives on strategies for the last 6 months of the year.
“While the concept of ‘Sustainable and Efficient development’ has become familiar to us, it is now even more crucial to grasp its profound significance. In recent years, our proactive focus on strengthening core business lines and reducing Banca PA business has yielded positive results. The amended Insurance Business Law of 2022 has further accentuated the impact of our sustainable and efficient development approach. While achieving growth in reinsurance premiums is not overly challenging, ensuring sustainability and efficiency presents a significant test. I commend the unwavering efforts of all business units that have been dedicated to delivering outstanding services for VINARE. Once again, I urge all officers, departments, and levels to join forces in fostering VINARE’s enduring development.” emphasized CEO Mai Xuan Dung.
Providing guidance during the conference, Mr. Nguyen Anh Tuan – Chairman of the Board of Directors, commended the collective efforts of all staff members and employees and acknowledged the achieved results in the first six months. These achievements have been made feasible through robust backing and exemplary cooperation from business partners, as well as the dedicated involvement of shareholders. This success owes itself to the close and continuous partnership spanning the Board of Directors, the Executive Board, the Board of Control, alongside all departments, and the entirety of VINARE’s personnel. This collaboration has steered VINARE’s ship in alignment with the strategic directions set forth by the company.
“With the direction of sustainable development and efficiency, I believe that VINARE needs to continue effectively implementing the five factors related to the market, partners, competitive capabilities, products, and legal framework. Firstly, we all recognize the presence of domestic and international markets, and it’s evident that the market factor is undergoing changes. In the pursuit of domestic market growth, VINARE has prioritized principled collaborations with nearly 30 non-life insurance companies within the country. Moreover, the organization has been proactively expanding its international market presence, as evidenced by a growing number of foreign partners. Given the intensifying competition within Vietnam’s insurance market, enhancing internal competitive capabilities becomes crucial for expanding market share.
In terms of product development, VINARE has proactively collaborated with partners to develop new products, yielding tangible results, and building potential revenue streams for the future. Lastly, the legal framework has undergone substantial changes with the 2022 Insurance Business Law and the subsequent guidelines issued. Therefore, actively adhering to and promptly complying with these regulations will enable VINARE to elevate standards, enhance its position, and deliver sustainable value to partners and clients,” added Chairman of the Board of Directors, Nguyen Anh Tuan.
Focusing on strengthening core competencies and internal governance, VINARE persists in enhancing its system capabilities to align with business requirements. A significant achievement involves the successful integration of new reinsurance business management software (ViCore), alongside electronic document management systems (ViDoc, ViContent), and the formulation of risk management policies. This commitment extends to the execution of internal audit plans across departments and investment ventures. These initiatives have been seamlessly integrated into business, constituting a vital component of VINARE’s comprehensive Enterprise Risk Management (ERM) framework.
In the review period 2023, 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.
As a market information hub, VINARE continues its publication of the first issue of the Insurance – Reinsurance Newsletter (bilingual Vietnamese-English) for the year 2023. This newsletter has garnered positive feedback from VINARE’s partners and clients, underscoring the demand for objective and high-quality information within the expansive insurance and reinsurance market.
Aligned with the established sustainable development strategies and implemented solutions, VINARE remains committed to its goal of achieving and exceeding the growth targets set for 2023, as mandated by the General Shareholders’ Meeting: a reinsurance revenue of VND2.468 trillion and a pre-tax profit of VND460 billion.