2013: Profit before taxes of BIC reached over 123 billion dong
In 2013, in the context of difficulties of economic situation and insurance market, the average growth rate of total insurance premium in the market is lower than the growth rate in the last years. Thank to appropriate business solutions, however, BIC fulfilled the assigned business plan of this year, as follows:
Total revenue (after consolidated) gained 1,277.7 billion dong, in which total insurance revenue reached 937.3 billion dong. Profit before taxes reached 123.37 billion dong, increased 11% in comparison with 2012 and fulfilled over 100% the assigned plan of this year. Total underwriting reserve reached 438.4 billion dong, increased 19% compared to the previous year. Retained loss ratio is 38.8% - a safe level for insurance business.
In this year, BIC focused on changing the organization structure with the direction of strengthening business development, customer services, claim activities and centralizing underwriting management in the Head-Office. Moreover, in order to enhance training activities and support for some subsidiaries, staff rotation within HO and Subsidiaries has been implemented frequently in this year.
Business network has been expanded with the aims of ensuring the business efficiency and keeping abreast some key and potential markets. By this way, requirements for opening new business departments is prepared adequately to meet the demand of business growth, improve customer services and enhance BIC’s commercial presence in some key markets such as Hanoi, Ho Chi Minh cities. From January 1st 2014, by the establishment of Dong Do BIDV insurance company in Hanoi, BIC has 22 subsidiaries and 94 business departments in nationwide. In 2014, there is at least 01 subsidiary opened in the South area.
Moreover, in 2013, restructuring the product and customer portfolio is carried out efficiently. Individual and SME customers have been focused by deploying suitable retail insurance products. Total insurance premium of retail products in transaction counters (Bancasurance) increased over 20% in comparison with the previous year. Revenue of E-business channel in the website www.baohiemtructuyen.com.vn increased 80% compared with 2012.
One of the most important milestone of BIC’s development is buying shares of Lao-Viet insurance company (LVI) from Lao-Viet Bank (LVB) to increase the percentage of ownership in this Joint-venture to 65% since the Third Quarter of 2013, that is one step on the way of fulfilling the target of changing the current organization structure to Holding structure. At this time, BIC is completing the transfer of 65% equity of Cambodia – Vietnam insurance company (CVI). Besides that, in this year, BIDV and BIC have co-operated with Metlife - one of the biggest insurance firms in US to establish BIDV-Metlife life insurance Ltd Company. Procedure for issuing the foundation license of this new Joint-venture and other necessary requirements are prepared to put it into operation in the middle of 2014.
In 2013, the performance of BIC’s two Joint-Venture in oversea is also optimistic. With the growth rate of insurance revenue about 45% and growth rate of profit about 21%, LVI has maintained the 2nd biggest insurance firm in Laos in term of market share.
Especially, thanks to efforts to compensate claim quickly and rescue victims of ATR72-600 aircraft crashed in Pakse Laos, LVI was awarded Certificate of Merits from Prime Minister of Laos for this. At the same time, CVI is also ranking at the 5th biggest insurance firm in Cambodian market in respect of market share.
As predictions of some expects, 2014 is a difficult year of insurance industry, the targeted growth rate over 10% will be much challenged for this industry generally and non-life insurance firms particularly. As for BIC, based on the business strategy of retail promotion applied in recent years, 2014 is a very important year for BIC to deploy the restructuring project. By doing this, a range of solutions such as improving management, business network development, customer services and changing product, customer portfolio are performed synchronously. Efficiency is one of BIC’s priorities in order to fulfill the target of growth and sustainability.
Total revenue (after consolidated) gained 1,277.7 billion dong, in which total insurance revenue reached 937.3 billion dong. Profit before taxes reached 123.37 billion dong, increased 11% in comparison with 2012 and fulfilled over 100% the assigned plan of this year. Total underwriting reserve reached 438.4 billion dong, increased 19% compared to the previous year. Retained loss ratio is 38.8% - a safe level for insurance business.
In this year, BIC focused on changing the organization structure with the direction of strengthening business development, customer services, claim activities and centralizing underwriting management in the Head-Office. Moreover, in order to enhance training activities and support for some subsidiaries, staff rotation within HO and Subsidiaries has been implemented frequently in this year.
Business network has been expanded with the aims of ensuring the business efficiency and keeping abreast some key and potential markets. By this way, requirements for opening new business departments is prepared adequately to meet the demand of business growth, improve customer services and enhance BIC’s commercial presence in some key markets such as Hanoi, Ho Chi Minh cities. From January 1st 2014, by the establishment of Dong Do BIDV insurance company in Hanoi, BIC has 22 subsidiaries and 94 business departments in nationwide. In 2014, there is at least 01 subsidiary opened in the South area.
Moreover, in 2013, restructuring the product and customer portfolio is carried out efficiently. Individual and SME customers have been focused by deploying suitable retail insurance products. Total insurance premium of retail products in transaction counters (Bancasurance) increased over 20% in comparison with the previous year. Revenue of E-business channel in the website www.baohiemtructuyen.com.vn increased 80% compared with 2012.
One of the most important milestone of BIC’s development is buying shares of Lao-Viet insurance company (LVI) from Lao-Viet Bank (LVB) to increase the percentage of ownership in this Joint-venture to 65% since the Third Quarter of 2013, that is one step on the way of fulfilling the target of changing the current organization structure to Holding structure. At this time, BIC is completing the transfer of 65% equity of Cambodia – Vietnam insurance company (CVI). Besides that, in this year, BIDV and BIC have co-operated with Metlife - one of the biggest insurance firms in US to establish BIDV-Metlife life insurance Ltd Company. Procedure for issuing the foundation license of this new Joint-venture and other necessary requirements are prepared to put it into operation in the middle of 2014.
In 2013, the performance of BIC’s two Joint-Venture in oversea is also optimistic. With the growth rate of insurance revenue about 45% and growth rate of profit about 21%, LVI has maintained the 2nd biggest insurance firm in Laos in term of market share.
Especially, thanks to efforts to compensate claim quickly and rescue victims of ATR72-600 aircraft crashed in Pakse Laos, LVI was awarded Certificate of Merits from Prime Minister of Laos for this. At the same time, CVI is also ranking at the 5th biggest insurance firm in Cambodian market in respect of market share.
As predictions of some expects, 2014 is a difficult year of insurance industry, the targeted growth rate over 10% will be much challenged for this industry generally and non-life insurance firms particularly. As for BIC, based on the business strategy of retail promotion applied in recent years, 2014 is a very important year for BIC to deploy the restructuring project. By doing this, a range of solutions such as improving management, business network development, customer services and changing product, customer portfolio are performed synchronously. Efficiency is one of BIC’s priorities in order to fulfill the target of growth and sustainability.