PVIRe held year-end summation conference for year 2015 and implementation of 2016 plan

On 5th January 2016, PVI Reinsurance Joint Stock Corporation (PVIRe) successfully held 2015 year-end summation meeting and implementation of plan for year 2016 at PVI Tower, 1st Pham Van Bach Street, Cau Giay District, Hanoi.

2015 year-end summation conference and implementation of 2015 plan

Participating in the Meeting, PVIRe was honored to welcome the presence of Leaders from PVI Holdings, PVI Insurance Corporation and associated companies.

In 2015, total revenue of insurance premium was estimated at VND 68,374 billion (more than 21.9% in comparison with last year) reaching the highest growth rate during 2011-2015 period. In particular, revenue of non-life insurance field achieved VND 31,374 billion, over 14% compared to 2014. However, this growth concentrated in the retail sector, while the reinsurance business of some lines such as Engineering, Liability, Hull and P&I, etc. has been reduced and had low growth rate. Specially, the domestic Energy business slumped affecting reinsurance activity that decreased premium and share. Besides, total compensation amount was about VND 13,177 billion, which resulted in an increase of compensation ratio comapred to year 2014. In addition, becoming a member of ASEAN Economic Community (AEC) and the Agreement on the Trans-Pacific Partnership (TPP) has contributed to make up the premise of economic development in future and promoted the development of insurance business activity more advantageous. It is expected that non-life insurance business would grow by 18% in 2016.

The international reinsurance market continuously has competition trend with the excess of reinsurance capacity and pressure leading to premium reduction and expansion of insurance conditions. In 2015, oil price fell sharply making the decrease in exploration and mining activities, which totally affected to global Energy insurance program. Disaster loss ratio was lower than average loss ratio of 10 years (2005 – 2014) with loss amount estimated at approximately USD 16 billion. However, the damage due to fire tended to increase, such as explosion at Tianjin Port, loss to Power Plant and Refinery. As predicted by AM Best, there would be a trend of premium reduction, condition expansion and catastrophe risk increase in 2016.

At the end of year 2015, despite of economic difficulties and hard competition in domestic and international market, PVIRe continued to achieve positive results for all business indicators completed and fulfilled the plan thanks to the effort of all staffs in complying with the direction and strategy set out from the beginning of the year. Total revenue rounded up nearly VND 1,936 billion, achieving 111.2% of the plan, in which income from reinsurance was VND 1,592 billion completing 111% compared to the plan. Profit before tax was VND 154.6 billion completing 100.3% of 2015 plan.

Mr. Nguyen Anh Tuan – Chairman of PVI Holdings spoke at the meeting

At the meeting, some oustanding issues as well as key performance indicators were clarified, discussed and analyzed closely for year 2015. Particularly, after two years of operation under the new organizational model, representatives from different divisions/departments had presentation about achievement and improvement in business activity in order to get the best result, concurrently pointed out some business solutions to address current problems and enhance efficiency to accomplish successfully target plan for the year 2016.

Mr. Bui Van Thuan – CEO of PVI Holdings delivered a speech at the meeting

On the other hand, leaders also recognized efforts and contributions of all staff for firm’s business operation in 2015 by giving awards and certificates of merit for excellent collectives and individuals.

Leaders of PVI Holdings awarded certificates of merit for staffs completing excellently 2015 task

Besides the business results, work-life balanced activities have been increasingly improved with dynamic and modern working environment. PVIRe’s officers have also positively participated in other charitable activities and social activities. At the end of year 2015, PVIRe also held Employee Meeting 2016 to summarize the activities of Trade Union, unions and work to ensure the rights of employees in 2015. In addition, opinion and comments of each staff to enhance and improve the lives of employees were recorded for Union’s plan 2016 as well. On behalf of workers, Union Chairman and CEO signed collective labour agreement for year 2016.

Year 2015 was also a memorable time period witnessing a lot of cultural and sport activities and events to celebrate the 20th anniversary of establishment of PVI. To join such atmosphere, PVIRe participated enthusiastically in all categories and brought about the first prize in Entertainment Performance of Northern region with unique and artistic repertoires.

Heading toward year 2016, seeing the fierce competition in reinsurance market, business orientation of PVIRe in 2016 is prudent exploitation, risk control in order to ensure effectively the profit growth target of over VND 155 billion.In 2016, besides business objectives, PVIRe will continue to promote the development of information technology systems to support management, business as well as finance and accounting process. At the same time, the Corporation will also set up strategies for management, training and development of human resources including planning, training, recruitment and remuneration policies in order to improve the quality of labor, human resources initiative and the plan ready to respond to market fluctuations as well as meet the strategic development of PVIRe until year 2020.

PVIRe will strive further and commit to fulfil the designated targets, which ultimately contribute to the overall achievement of PVI Holdings.

Source: PVIRe