On the morning of April 23, 2024, the Vietnam National Reinsurance Corporation (VINARE) successfully held its annual shareholders’ meeting in 2024. The conference was attended by representatives from major shareholder SCIC, strategic shareholder Swiss Re, as well as VINARE shareholders and members of the Board of Directors, the Board of Control and the Board of Management.

During the meeting, Mr. Mai Xuan Dung, the Chief Executive Official of VINARE, presented impressive business results in the past year. The total revenue reached VND3,319 billion, with the gross written premium amounted to VND2,677 billion, reflecting a 13% rise year-on-year and achieving 108.5% of the target. Investment revenue amounted to VND491.7 billion. Notably, premium volume from core business posted a growth rate of 28.9% year-on-year, surpassing the initial forecasts for the year. This remarkable performance can be attributed to the successful writing of new business in overseas markets which increased by 41% y-o-y, mainly in Property line. Besides, revenue from treaties, particularly within the Engineering, Hull and Motor lines also witnessed decent growth rates. 

In addition, profits from financial investment activities also saw considerable growth thanks to an increase in investment assets, taking advantage of a short period of interest rate hike as well as increased investment in tier II bond issuance from banks with higher yields than those of the corresponding deposit interest rates.

As a result, pre-tax profit grew 7.8% year-on-year to VND473.6 billion.

Based on the results achieved, VINARE proposed to the shareholders’ meeting a dividend ratio for the year 2023 of 20%, exceeding the set target of 12%.

Furthermore, in 2023, VINARE successfully issued Risk Management Policies and Internal Regulations on Risk Management in accordance with Circular 70/2022/TT-BTC, regulations on document archiving, and regulations on the management and use of information technology systems. Additionally, with the completion of two Insurance – Reinsurance Newsletters in 2023, VINARE continued to affirm its role as an information hub in the market, providing objective and impartial information, contributing to the sustainable development of the Vietnamese insurance market.

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.

In 2023, VINARE achieved notable accomplishments. VINARE was honored to be listed in the Top 500 Fastest Growing Enterprises (Vietnam Report), Top 500 Most Profitable Enterprises (Vietnam Report), Top Strong Brands – Sustainable Development 2022-2023 (Vietnam Economic Times), Top 10 Companies with Good Corporate Governance in the Mid-Cap Group at the Vietnam Listed Companies Awards (VLCA) 2023, Top 10 Listed Companies with Good Corporate Governance in the 2022-2023 Evaluation Period by the Hanoi Stock Exchange (HNX), Top 12 Board of Directors committed to Good Corporate Governance Practice as well as Top 5 Boards of Directors with Good Diversity according to the Vietnam Institute of Directors (VIOD). 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 Swiss Re, Mr. Seng Lee, Regional Head of Principal Investments and Acquisitions Asia Pacific, expressed his delight with the achievements of VINARE in 2023. Mr. Seng Lee emphasized VINARE’s cautious approach in business direction and risk management, especially in the macroeconomic context and insurance market facing numerous challenges. Looking forward to VINARE’s 30th anniversary, Swiss Re pledged to continue accompanying VINARE in its development journey, assisting VINARE in enhancing its competitive capacity and influence in both domestic and international markets. Alongside the State Capital Investment Corporation (SCIC), which currently holds 40.36% of VINARE’s shares, Swiss Re is the second largest foreign strategic shareholder after SCIC (holding 25% of shares) of VINARE since January 2008. Additionally, 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.

In 2024, the global economic outlook is not optimistic. The potential risks from the global economic environment still persist and continue to negatively impact Vietnam’s economic growth prospects. Global trade growth continues to trend low, influenced by geopolitical competition. Pressure from crude oil prices, volatile food prices, and prolonged tight monetary policies in many countries are also present. Therefore, Vietnam has set its GDP growth target for 2024 at 6 – 6.5% to address these challenges.

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 2024:

• The gross written premium is VND 2,918 trillion, increasing 9% year-on-year. VINARE will focus on core business in 2023 with a revenue growth target of 9.4% compared to the previous year.
• Pre-tax profit is VND505 billion, increasing 6.6% compared to 2023. The dividend ratio for 2023 is expected at 20%.
• 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.

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. These efforts are aimed towards commemorating VINARE’s 30th anniversary (September 27, 2024) – a significant milestone in its establishment and development.