VietNamNet Bridge – BIDV Insurance Corporation (BIC) admitted at its annual general meeting that the company had fallen to seventh position in the non-life insurance market based on market share, with premiums of VND790.55 billion ($37.6 million).

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It was overtaken by Samsung Vina Insurance (SVI) which boasted premiums of VND913.55 billion ($43.5 million). BIC lost out to SVI despite BIC’s market share reaching 3.22 per cent last year, up 0.2 per cent against 2012.

In 2013, the Samsung group increasingly invested in Vietnam helping SVI improve its revenues; especially revenues from insurance services which reached VND1.18 trillion ($56.2 million), up from VND874 billion ($41.6 million) in 2012.

Pham Truong Giang, general director of Posts and Telecommunications Group (PTI) in fifth place, said that PTI and other insurance groups had witnessed growth. PTI would continuously expand its network and improve goods and service quality in coming period, Giang added.

Saigon-Hanoi Insurance Corporation (BSH) also saw a fall in its ranking.

BSH fell to 19th position out of the 29 businesses currently operating in the market, a five place fall against 2011 and 2012. BSH’s market share of 0.9 per cent in 2013 represented a 0.5 per cent fall against the previous year. BSH’s revenues significantly reduced in 2013 after Vinacom divested.

Other businesses claimed that their market share had declined.

Xuan Thanh Insurance Joint Stock Company’s report on 2013 business result showed that its market share decreased to 0.77 per cent, down from 0.98 per cent in 2012.

BIC’s chairman Pham Quang Tung said that to retain higher than average growth targets and to expand market share, the company had to invest more into network development which had been largely ignored last year. The firm is targeting premiums of VND1 trillion ($47.6 million) in 2014, up 11.7 per cent.

PTI also plans to retain its fifth position and secure its place as one of the top three motor insurance companies with direct premiums of VND 1.58 trillion ($75.3 million), up 8 per cent while BSH projects premiums of VND570 billion ($27 million).

Military Insurance Corporation (MIC), launched with the support of the Military Bank as its shareholder two years ago, is now posing a threat to more established firms. MIC holds the eighth spot, followed by BIC with VND588 billion ($28 million) in direct premiums last year, tailed by AAA and GIC.

Source: VIR