Consecutive setbacks

The year 2025 marked one of the most difficult periods for PJICO Insurance (PGI).

On July 7, 2025, the Ministry of Public Security announced that the Corruption, Economic Crime, and Smuggling Investigation Department (C03) had indicted and temporarily detained two former Directors General of PJICO, Dao Nam Hai and Nguyen Thị Huong Giang, to investigate acts of "receiving bribes." Also indicted were several other executives and officials in charge of motor vehicle assessment and compensation at the enterprise.

Earlier, on May 15, 2025, PJICO's Board of Directors dismissed Nguyen Thi Huong Giang from her position as CEO after she no longer met the legal requirements to serve as the company's legal representative. Tran Hoai Nam was also removed from his role as deputy CEO.

The case placed significant pressure on the reputation and corporate governance of one of Vietnam's largest non-life insurers. It also marked the first major crisis involving PJICO's senior leadership in many years.

However, the company's challenges extended beyond internal issues.

Between 2020 and 2022, the COVID-19 pandemic disrupted business activity, reduced insurance demand from many enterprises, and intensified competition across the insurance market.

In 2024, Typhoon Yagi caused severe damage across many provinces, driving up claim costs for property and motor insurance. The storm created financial pressure across Vietnam's non-life insurance industry.

In 2025, in addition to natural disasters, the market saw increasingly aggressive price competition. More than 30 non-life insurers competed for customers by lowering premiums and increasing commissions, putting significant pressure on profit margins.

According to PJICO, 2025 was a year in which the company simultaneously faced the lingering effects of natural disasters, fierce market competition, and leadership-related disruptions, all of which negatively affected its operations.

Growth continues, but difficulties exist

Over the past decade, PJICO has remained among Vietnam's leading non-life insurance companies.

Excluding health insurance, the company ranked among the three largest insurers by premium revenue, after PVI and Bao Viet, with a market share of approximately 6.7 percent in 2025. Its core strengths remain motor, property, marine, energy, and corporate insurance, supported by the customer ecosystem of Petrolimex.

Notably, PJICO remained profitable throughout the COVID-19 period, avoided major financial disruptions, and maintained revenue growth.

Even in 2025, despite the combined impact of natural disasters, intense competition, and leadership turmoil, the company still reported positive business results.

Gross written premiums reached VND4,619 billion, up 5 percent from 2024. Net profit rose 5.4 percent year on year to more than VND245.5 billion.

However, this performance was relatively modest if noting its great advantages. Total non-life insurance premium revenue across Vietnam increased by about 10.3 percent in 2025.

Notably, in 2025, PJICO’s key line - motor vehicle insurance - fell 4.1 percent to VND1,572 billion. This reflected growing competitive pressure in the segment that contributed the highest revenue share for PJICO.

After the personnel upheaval, the company reorganized its management with the appointment of new CEO Tran Anh Tuan as legal representative and 3 Deputy CEOs to stabilize operations.

PJICO targets insurance premium revenue of VND5,238 billion in 2026, up about 10 percent, while pre-tax profit is expected to rise 6 percent.

Q1/2026 results showed positive signs, with net revenue from insurance business reaching nearly VND996 billion, up 11.4 percent year-on-year; after-tax profit reached VND77.1 billion, up 8.2 percent.

Even so, the company’s recent growth rate remains lower than the overall growth of the non-life insurance market.

The outlook for PJICO and the non-life insurance industry overall remains positive. Economic growth, large-scale public investment, rising car numbers, and asset protection demand after Covid-19 and natural disasters will continue to create room for the market.

However, there are also many challenges. Price competition, compensation costs due to natural disasters, fires, and traffic accidents remain high, while demands for digital transformation and AI application in appraisal, compensation, and risk management are increasingly urgent.

In that context, the advantage will lean toward enterprises with good pricing capability, effective claims control, leverage of customer ecosystems, and strong digital transformation. For PJICO, stabilizing governance after the upheaval, restoring customer trust, and improving operational efficiency will be decisive factors for breakthrough in the coming period.

Manh Ha