According to the Post - telecommunications Insurance (PTI), in the first 9 months of 2020, the total revenue of this business reached 4,280 billion VND, up 3% compared to the same period in 2019, completing 68.5% of the plan 2020.
According to the report on business results of the third quarter of 2020 of PTI, two main lines of motor vehicle insurance and personal insurance are still the two main lines, bringing more than 80% of revenue for PTI.
In which, revenue from motor vehicle insurance is 1,948 billion dong and human insurance revenue is 1,478 billion dong.
Technical property insurance and marine insurance also achieved revenue of 682 billion VND, up 24% and 171 billion VND, up 7.8% over the same period in 2019.
Although in the first 6 months of 2020, motor vehicle insurance is significantly affected by the sharp decline in the number of cars sold on the market, as well as due to the Covid-19 pandemic, but after the Prime Minister signed Issues Decree No. 70/2020 / ND-CP regulating the new registration fee for domestically manufactured or assembled cars, reduced by 50% compared to the old rate in Decree 20/2019 / ND- CP takes effect from June 28 to the end of 2020, the car trading market has gradually stabilized, supporting a lot for the operation of insurance companies.
In addition, from July 20th 2020, Huu Nghi border gate, Lang Son province officially applied to buy compulsory insurance for civil liability of motor vehicle owners who are Chinese who have import and export activities through the gate. This new regulation has also brought new opportunities for the motor vehicle insurance business.
PTI representative said, with the current growth, this business still has the ability to complete the plan by the end of 2020.
PTI is currently the third insurance company in the market, in which motor vehicle insurance and personal insurance are both holding the 2nd position in the market. It is known that in 2020, PTI sets the target insurance revenue of VND 6,250 billion.
The recent AGM of PTI officially approved an increase in the ownership rate for foreign investors (room) from 49% to 100%. According to PTI, the loosening room makes sense for the company to increase capital, which is also a necessary condition to maintain or increase the international credit rating in the future.
The General Meeting of Shareholders also approved the strategic orientation of 2020 - 2025 with the aim of increasing insurance premium revenue by 12% / year on average. By 2025, original insurance revenue will reach 11,000 billion VND, accounting for 12% of market share, ranking 2nd in the market. The average growth rate of profit before tax is at least 8% / year, the average annual dividend is at least 10%.
In the strategic direction 2020 - 2025, PTI sets the target of increasing insurance premium revenue by 12% / year on average. By 2025, PTI aims to achieve original insurance revenue of VND 11,000 billion, accounting for 12% of the market share, ranking second in the market.
Along with that is the target of the average pre-tax profit growth rate of at least 8% / year, the average annual dividend payout of at least 10%.
This insurance company is also planning to increase the ownership rate for foreign investors (foreign room) from 49% to 100%.
Source: Vietnam Finance - Translated by Vietnam Credit