VINARE reports 8.2% y-o-y revenue increase in H1'24 ...

Vietnam National Reinsurance Corporation (VINARE) has announced its financial results for the first half of 2024, reporting a total revenue of VND1,696 trillion, around $68 million dollars, an 8.2% increase year-on-year and attaining 58.1% of the yearly target.

The firm’s gross written premium amounted to VND1,607 trillion, around $64 million, reflecting an 11.2% rise year-on-year and achieving 57.9% of the yearly target.

According to VINARE, these results can be attributed to the successful writing of new business in both local and overseas markets and increasing revenue from facultative accounts, particularly within the Engineering, and Property lines.

On the other hand, revenue from treaties in the Property, Engineering, and Cargo lines has been on a downward trend due to various factors, including slow public investment and Decree 67/2003, with its implementation being one of the major causes affecting these lines.

Decree 67/2003 mandates compulsory civil liability insurance for motor vehicle owners, compulsory fire and explosion insurance, and compulsory insurance for construction investment activities.

Additionally, the slow pace of public investment fund disbursement and the challenges faced by insurance companies in managing import – export activities related to the Russian and Ukrainian markets have also contributed to this decline.

“I highly appreciate the efforts of all departments that have diligently and conscientiously provided excellent service for VINARE. Once again, I urge all VINARE employees to continue monitoring, staying focused, and striving to carry out all assigned tasks to fulfill our most important political mission: successfully achieving the objectives set for 2024,” CEO Mai Xuan Dzung stated.

As it approaches its 30th anniversary, VINARE is determined to exceed the targets set by the General Shareholders’ Meeting for 2024, the firm highlighted

Accordingly, the reinsurance premium revenue is projected to reach VND2,918 billion, around $116,000, the majority of which – VND2,778 billion, around $110 thousand, coming from core business – and pre-tax profit expected to reach VND505 billion, around $21 million.

Pham Phan Dzung, Independent Member of the Board of Directors, commented: “On behalf of the shareholders and the Board of Directors, I highly appreciate the results achieved by VINARE. This outcome reflects the tremendous effort from the Leadership and all employees, and demonstrates the decisive, consistent, and unified direction within the corporation.

“I am confident that, under the direct guidance of the Chairman of the Board, the CEO, and the entire Board of Management, we will successfully accomplish the tasks assigned by the Board of Directors, as we approach the 30th anniversary of VINARE.”