On 30th July, 2021, Vietnam National Reinsurance Corporation (VINARE) held an online conference to review business activities in the first 6 months of 2021.
Although the Covid epidemic is still raging on, affecting all sectors of the economy, non-life insurance witnessed relatively high growth of 9.3% in terms of premium volume. At this conference, VINARE also announced impressive business results for the first half 2021.
On behalf of the Board of Management, Mr. Mai Xuan Dung, Chief Executive Officer reported: gross written premiums in the first 6 months amounted to VND 1,165 billion, achieving 51.8% of the target. Profit before tax posted VND 218.2 billion, equivalent to 57.8% of the year target. Both underwriting profit and investment returns exceeded the expectation, at VND 36.9 billion and VND 181.3 billion respectively.
In the review period 2021, 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 B++ since then, reflecting its strong financial position and good operating results.
Closing the conference, Mr. Nguyen Anh Tuan, Executive Chairman of the Board, highly appreciated the efforts of all employees and the accomplishment in the first six months of the year. In addition to focusing on business operation, VINARE has cooperated with several partners to develop new products and actively create future revenue-generating capabilities. At the same time, VINARE also focuses on further improving corporate governance as well as its internal management framework in order to be best prepared for long-term development. VINARE has completed the amendment of several internal management regulations and established Internal Audit under the Board of Directors.
At the Conference, opinions were also focused on discussing solutions to fulfil the 2021 targets, including the Business Continuity Plan to minimize the impact from Covid-19.
The 2021 Annual General Meeting of Shareholders approved the 2020 dividend payout rate of 15% in cash and 15% in bonus shares. Thus, in July 2021, with more than 131 million shares outstanding, VINARE paid out VND 196.6 billion in dividend to shareholders. Also in July 2021, VINARE carried out the bonus share issuance to increase share capital from surplus equity, whereby VINARE’s charter capital after the issuance will increase to 1,507,371,300,000 (compared to 1,310,759,370,000).
According to the business plan 2021 approved by the 2021 Annual General Meeting of Shareholders, the target of pre-tax profit is VND 377 billion and dividend payout rate is projected at 12% on the new charter capital.