The total revenue of the first nine months in 2010 of this company reached 3.642 trillion dong, up by 35.7%, completing 90.43% 2010’s planned target. With this growth, PVI has approved the business plan of 2011, in which revenue and profit targets are respectively set at 4.860 trillion dong and 420 billion dong.

Looking at the overall market in the first nine months of 2010, according to statistics of the Vietnam Insurance Association, non-life insurance market continued to grow by 25.97% in premium revenue, reaching 12.417 trillion dong, of that domestic reinsurance was 1.458 trillion dong and foreign reinsurance was 2.947 trillion dong.

Motor vehicle insurance took the leading position in revenue with 3.885 trillion dong (up by 19.66%), followed by health and personal accident insurance with 1.683 trillion dong (up by 28.74%), construction and installation insurance with 1.429 trillion dong (up by 28.3%), marine insurance with 1.381 trillion dong (up by 20.78%), fire and all risks insurance with 1.099 trillion dong (up by 34.47%), and oil and gas insurance with 1.041 trillion dong (up by 47%).

Insurers with high turnover included Bao Viet with 3.007 trillion dong, PVI with 2.850 trillion dong, Bao Minh with 1.515 trillion dong, PJICO with 1.111 trillion dong, and PTI with 430 billion dong.

Insurers with high growth rate over the same period of 2009 were MSIG with 297% (121 billion dong turnover), Groupama with 205% (13.7 billion dong turnover), ACE with 153% (30 billion dong turnover), Hung Vuong with 136.7% (26 billion dong turnover), Bao Ngan with 125% (83 billion dong), and SVIC with 106% (197 billion dong turnover).

However, “the picture is not pure pink” when looking at each specific company. While most life insurers have published satisfactory business results, to date, many non-life insurers are rushing to complete their plan in 2010. In addition to the intense competition, which has led to cost reduction and insurance terms expansion, the unfavourable economic conditions is also one of the main reasons that cause non-life insurance companies to face difficulties in exploiting customers and developing products.

Talking to Dau Tu Chung Khoan, marketing director of a foreign non-life insurance firm said that although the leading insurance product of his company is developing very positively, the company only expects to reach 90% of the plan set earlier of the year. He added that the fierce competition on non-life insurance market is just one factor, the main issue is that many businesses are finding that until now, the economic crisis has just seemed to affect them. Therefore, if it is compulsory, firms would purchase insurance, otherwise, paying for other additional products is quite expensive for them.

After one-month transforming into the model of a joint stock company (since October 1, 2010), Bidv’s insurance company (BIC) in October reached 59 billion dong revenue, of that, revenue from insurance business was 38.4 billion dong, completing 23% of the fourth quarter’s plan assigned by the shareholders, revenue from financial investment was 20.06 billion dong, completing 41.2% of the fourth quarter’s plan. BIC’s profit after tax in October reached 10.3 billion dong, completing 41% of the fourth quarter’s plan assigned by the shareholders, of that, profit from insurance business was 1.43 billion dong, from financial investments was 8.859 billion dong. The business result of BIC in October 2010 has not satisfied the expectation, since during this time, the company had to complete the transformation, and focus on perfecting and changing the business management mechanism, processes, internal documents and regulations to suit the new model.

Representative of a domestic non-life insurance company currently holding relatively large market shares, said his company to date has not completed 70% of the plan set in the beginning of the year, including revenue targets for insurance business and financial investments.

Dau Tu Chung Khoan - November 2010