Insurance firms struggle to attract investors despite good performance

Insurance companies performed well in Vietnam during the COVID-19 pandemic, but their shares have not attracted much attention from investors.

Insurance firms struggle to attract investors despite good performance hinh anh 1

Share prices of BVH decreased more than 4 percent despite an increase of 29.4 percent in the company's profit after taxes. (Photo: baoviet.com)


There are 11 insurance firms listed in Vietnam's stock market with three companies on UPCOM.

In 2020, Bao Minh Insurance Corporation (BMI) shares recorded a growth of nearly 22 percent, while Bao Viet Holdings (BVH) and BIDV Insurance Corporation (BIC) decreased by 4.3 percent and 9 percent respectively.

In the third quarter of 2020, BMI reported revenue from premiums of 905.48 billion VND, an increase of 2.1 percent year-on-year, while profit before tax increased nearly 47 percent to 78.89 billion VND, according to third quarter financial results. In the first nine months of 2020, profit after taxes reached more than 158.4 billion VND, up 15 percent year-on-year.

BVH and BIC also witnessed big returns during the same period. BVH earned 9,593 billion VND from premiums in the third quarter, up 6.2 percent year-on-year, while profit after tax up 29.4 percent to 473.31 billion VND.

Similarly, BIC saw an increase of nearly 13 percent year-on-year to 697.3 billion VND in premiums revenue, with profit after tax of 755.9 billion VND, up nearly 21 percent.

Data from the Ministry of Finance showed in the first eleven months of 2020, premiums revenue from insurance firms rose 16 percent year-on-year to 449.4 trillion VND. Of which, revenue from non-life insurance reached 54.2 trillion VND, and from life insurance 111.6 trillion VND.

In 2020, total premiums revenue was expected to reach 182.7 trillion VND, up 15 percent year-on-year.

The growth of the insurance market has been stable so far, but its size in the market is still small compared to its capability. Experts see further room for the market to expand.

According to a report from Bao Viet Securities, Vietnam is among countries with the fastest growth in the insurance sector during the 2016 – 2020 period, on the back of diverse needs in social welfare and medical care, as well as rising insurance needs in retirement, especially in a health crisis like last year.

 

Some companies, such as BVH, PVI Holdings (PVI) and Post-Telecommunication Joint Stock Insurance Corporation (PTI), have attracted more new customers than others.

With potential in expanding activities in many areas and connecting to big financial organisations, the demand for capital among insurance providers will increase gradually.

Focus on small companies

Instead of big companies, investors sought more interests in small insurance firms such as Bao Long Insurance Corporation (BLI), Agriculture Bank Insurance Joint Stock Corporation (ABI), PTI or Petrolimex Insurance Corporation (PGI).

In 2020, the price of small insurance companies' shares also rose sharply, such as BLI shares price increased nearly 49 percent, ABI rose 34.8 percent, PTI up 24.3 percent, and PGI up nearly 20 percent.

However, the growth can not be compared to other sectors like banking which was up more than 100 percent, such as Saigon Hanoi Commercial Joint Stock Bank (SHB) which increased more than 153 percent.

Since insurance is a part of the financial sector, it's market expectation is as high as banking or security, Nguyen Hong Khanh, head of analytics of Vietnam International Securities Joint Stock Company (VISE), told tinnhanhchungkhoan.vn. But the number of insurance stocks in the market is still low, so investors' attention is diverted to other sectors.

While investors are still searching for new and promising investments, there is a possibility they will only focus on well-known insurance firms with a proven track record and high potential for growth./.VNS

VN insurance market sees growth this year despite COVID-19

VN insurance market sees growth this year despite COVID-19

Vietnam’s insurance market has experienced growth this year, while many other sectors are suffering a lot of negative impacts from the COVID-19 pandemic, according to the Ministry of Finance.

 
 

Other News

.
Organic Tet cakes become a hit
Organic Tet cakes become a hit
BUSINESSicon  09/02/2021 

Organic banh chung (square glutinous rice cake) sold in Ho Chi Minh City for the first time for Tet (Lunar New Year) has become very popular.

Novartis honored as pioneer in digital transformation in healthcare
Novartis honored as pioneer in digital transformation in healthcare
BUSINESSicon  09/02/2021 

Novartis is the sole pharmaceutical firm among a total of 34 units that were honored for their efforts and outstanding contributions to the Digital Transformation of the Healthcare Sector in 2020, at the National Digital Transformation Congress.

The poor, as well as businesses, fall into 'black credit' trap
The poor, as well as businesses, fall into 'black credit' trap
FEATUREicon  09/02/2021 

The poor, who lack financial information and knowledge, are often hurt by black credit. But many businesspeople have also become victims.

Enacting long-term reforms for strong economic recovery
Enacting long-term reforms for strong economic recovery
BUSINESSicon  09/02/2021 

As the global economy is still mostly struggling with the health crisis, the start in 2021 is overshadowed by the hurdles of the previous year. Nevertheless, Vietnam may regain traction in economic growth.

Keeping opportunities fresh in fruit and vegetable exports
Keeping opportunities fresh in fruit and vegetable exports
BUSINESSicon  08/02/2021 

The export of Vietnamese fruit and vegetables is worth hundreds of millions of US dollars each year but is so far impeded by the lack of appropriate preservation technology.

VIETNAM BUSINESS NEWS FEBRUARY 8
VIETNAM BUSINESS NEWS FEBRUARY 8
BUSINESSicon  08/02/2021 

Flower growers look to online sales amid COVID-19 resurgence

Industrial park developers promote sustainability to attract “eagles”
Industrial park developers promote sustainability to attract “eagles”
BUSINESSicon  07/02/2021 

Vietnam has witnessed a growth in the arrival of global high-tech brands like Pegatron, Universal Scientific Industrial, Foxconn.

COVID-19 outbreak takes a toll on peach blossom sales
COVID-19 outbreak takes a toll on peach blossom sales
BUSINESSicon  08/02/2021 

As the Tet (Lunar New Year) holiday approaches people in Ha Noi flock to Quang An market in Tay Ho District to buy peach blossom trees.

Tax revenue from Google, Youtube, Facebook reaches $49.5 million in 2020
Tax revenue from Google, Youtube, Facebook reaches $49.5 million in 2020
BUSINESSicon  07/02/2021 

Tax revenues from online advertising business models of foreign organisations that do not have legal entities in Vietnam like Google, YouTube or Facebook hit VND1.14 trillion ($49.5 million) last year.

E-wallets offer online lucky money services amid virus outbreak
E-wallets offer online lucky money services amid virus outbreak
BUSINESSicon  06/02/2021 

E-wallets are gearing up to offer online lucky money services as the Tet (Lunar New Year) holiday approaches amid the third coronavirus outbreak in Vietnam.

VIETNAM BUSINESS NEWS FEBRUARY 7
VIETNAM BUSINESS NEWS FEBRUARY 7
BUSINESSicon  07/02/2021 

Vietnam rice prices hit 10-year high

Information security risks for SMEs in 2021
Information security risks for SMEs in 2021
BUSINESSicon  06/02/2021 

Not only facing difficulties caused by the Covid-19 pandemic, small and medium enterprises (SMEs) in Vietnam will also face many information safety and data security risks this year.

Desire for long-term tactics in solar power
Desire for long-term tactics in solar power
BUSINESSicon  06/02/2021 

Although Vietnam began to develop solar power plants just about three years ago, the initially achieved capacities have been outstanding. 

Logistics industry forecast to grow in 2021 on global recovery
Logistics industry forecast to grow in 2021 on global recovery
BUSINESSicon  07/02/2021 

The seaport and logistics industry was forecast to grow significantly on the prospect of global trade recovery in 2021 when the vaccine to prevent COVID-19 is administered worldwide.

Vietnam attractive to franchises, experts say
Vietnam attractive to franchises, experts say
BUSINESSicon  07/02/2021 

Vietnam will become an attractive destination for franchising businesses after the pandemic ends, experts have said.

VIETNAM BUSINESS NEWS FEBRUARY 6
VIETNAM BUSINESS NEWS FEBRUARY 6
BUSINESSicon  06/02/2021 

Exports expected to continue expanding in 2021

New bank frauds emerged as Tet nears
New bank frauds emerged as Tet nears
BUSINESSicon  05/02/2021 

Customers are urged to stay cautious against rampant scam and fraud activities ahead of Tet holidays.

Shaping the next economic decade
Shaping the next economic decade
BUSINESSicon  05/02/2021 

Vietnam is expected to further improve the domestic business and investment climate with the Party setting out the country’s new Socioeconomic Development Strategy for the next 10 years,

Car refurbishment services in high demand on pre-Tet days
Car refurbishment services in high demand on pre-Tet days
BUSINESSicon  05/02/2021 

The demand for car maintenance, cleaning and refurbishment has soared on pre-Tet days, keeping garages busy from now until the last day of the Lunar New Year.

Highest expected Tet bonus over VND1 billion, average wage down
Highest expected Tet bonus over VND1 billion, average wage down
BUSINESSicon  05/02/2021 

The highest Tet bonus workers this year is VND1.07 billion, or over $41,000. The highest pay in 2020 was VND516 million a month.

 
 
 
Leave your comment on an article

OR QUICK LOGIN