Some Vietnamese insurance companies plan to increase charter capital and seek for strategic shareholders in 2014

Up to now, among public insurance companies, there are five companies having foreign strategic shareholders, including Bao Minh (AXA), Bao Viet (Sumitomo Life), PVI (Talanx, OIF), AAA (IAG) and GIC (ERGO). In 2014, some companies such as Bao Viet, BIC, and PJICO plan to have strategic shareholders and increase their charter capital.

For Bao Viet Group, in addition to Sumitomo Life who is holding 18% of Bao Viet’s shares, the Group expects to have another foreign strategic shareholder who is experienced in business and finance management. Bao Viet also aims to raise their charter capital by VND 400-615 billion to the amount of VND 7,205-7,420 billion through issuing common shares with the estimated number of shares being 40-61.5 million.

In 2014, Bao Viet expects to reach the unified total revenue of VND 18,329 billion which is 7.2% higher than in 2013, the unified profit before tax of VND 1,500 billion, and the unified profit after tax of VND 1,183 billion which is 96% higher than in 2013. Dividend is expected to be 13% of charter capital.

Similarly, in 2014 or beginning of 2015, BIC plans to have strategic shareholder who can provide the company with consultancy in business management and technique. Since 2013, BIC has approached many partners who are financial investors or insurance companies and will release the final result after completion of the process. The company expects to issue the maximum of 30% of capital to its strategic shareholder, for which the company’s capital increases to VND 1,400-1,500 billion. The additional capital will be used to diversify the company’s investment portfolio through investing in real estate, stocks, and guaranteed corporate treasuries.

In 2014, BIC expects to increase revenue from insurance premium by 12% compared to 2013 to the amount of VND 1,000 billion, profit before tax (including BIC and its subsidiary LVI) by 3.5% compare to 2013 to VND 130 billion, and dividend is expected to be 10% as in 2013.

Like the two companies above, PJICO aims to increase its charter capital to at least VND 1,000 billion through seeking for strategic shareholder with expected dividend being 10-12%annum.

In 2014, PJICO plans to reach original insurance revenue of VND 2,100 billion which is 6% higher than in 2013, profit before tax of more than VND 100 billion which is 18,2% higher than in 2013, and expected dividend of 9-10% annum.