Hanoi Re achieves historic profit milestones

Hanoi Reinsurance Joint Stock Corporation reported a 12% increase in revenue to VND2,990 billion (US$122.8 million) in 2023, a 3% growth from 2022, and a 35% increase in pre-tax profit to VND256 billion.
Hanoi Re’s business performance for the year 2023 showed remarkable achievements. The total revenue for 2023 is estimated at VND2,990 billion, exceeding the plan by 12%.

Pre-tax profit is expected to reach VND256 billion, a 35% increase from 2022, marking the highest profit level since Hanoi Re’s establishment in 2011. The company’s combined ratio for 2023 significantly improved to below 95%.

According to Trinh Anh Tuan, CEO of Hanoi Re, the company considers 2023 to be a challenging year for the Vietnamese insurance market.

To achieve positive results as mentioned above, they maximized the additional owner’s equity injected during the year to enhance the efficiency of financial investments, increase retention capacity, and expand local & overseas reinsurance activities.

During Jan. 23–24, Hanoi Re welcomed Torsten Leue, CEO of Talanx Group, and Edgar Puls, CEO of HDI Global SE, to visit the company.

The high-level executives from Talanx Group and HDI Global SE expressed their congratulations on Hanoi Re’s achievements in 2023.

The high-level delegation from Talanx Group and HDI Global SE (Germany) presented a commemorative medal to honor Hanoi Re for exceeding its 2023 business plan. Photo courtesy of Hanoi Re

Controlled combined ratio in 2023 at low level

According to Hanoi Re’s report, the company maintained a combined ratio of 94.6%, lower than the 95.2% in 2022.

The global insurance market faced numerous challenges and difficulties in 2023, with an increased loss ratio due to global uncertainties and geopolitical instabilities.

Hanoi Re’s well-controlled combined ratio is a result of implementing proper underwriting guidelines and conducting professional risk engineering with an experienced workforce.

Key highlights in 2023

In 2023, Hanoi Re successfully completed the increase in its charter capital, resulting in a remarkable growth of over 60% in total equity, thereby fortifying its financial strength.

Hanoi Re’s leaders with partners and customers at the launching event of the new brand. Photo courtesy of Hanoi Re

Concurrently, the company intensified its insurance auxiliary activities and risk engineering consulting, which is highly recognized by clients for its professional quality.

Furthermore, 2023 holds historical significance in the company’s development as it officially rebranded from PVI Re to Hanoi Re and successfully organized the launching ceremony, attended by a diverse array of local and overseas partners.

Business plan for 2024

The business plan for Hanoi Re in 2024 is highly challenging, given the anticipated difficulties in both local and overseas insurance markets.

However, in this context, the company acknowledges the importance of risk assessment, especially in the early stages.

“With an advanced enterprise risk management system adhering to international standards and a significantly improved financial foundation following the capital increase, with the new brand, we anticipate that in 2024, the company will continue to expand and achieve sustainable development, delivering even more value to customers and shareholders,” said Phung Tuan Kien, Chairman of Hanoi Re.

HDI Global SE, a wholly owned subsidiary of Talanx Group, is a strategic shareholder and holds a controlling stake in PVI Holdings. Currently, PVI Holdings, a major shareholder, owns more than 80% of Hanoi Re’s shares.

Listing on the Hanoi Stock Exchange since 2020 (PRE), Hanoi Re stands out as a company with a high level of annual dividend ratio compared to the industry.

For seven consecutive years, from 2017 to the present, the company has maintained a dividend payout by cash of 16% per year.