The presence of foreign investors in domestic insurance companies is considered a positive sign for the development of the Vietnamese insurance sector.

Petrolimex Insurance Corporation (Pjico) has recently revealed its plans to sell 17.7 million individual shares, equalling 20 per cent of its chartered capital, to foreign investors, which is considered a notable sale in the insurance sector in 2016.

On April 20, Pjico attended a working session with an unnamed foreign investor to discuss details of the sale. Another working session was held on April 27.

Dao Hai Nam, Pjico’s director, said that the sale of individual shares was expected to complete in the first half of this year, or not later than September.

After the sale, Pjico’s chartered capital will increase to VND1 trillion. In 2015, Pjico’s revenue was VND2.23 trillion ($100.2 million), up 5.1 per cent on-year and exceeding its 2015 target by 4.1 per cent.

Motor vehicle insurances netted the highest revenue of VND997.8 billion ($44.8 million), followed by the asset-technical sector with VND445.2 billion ($20.1 million), the boat insurance sector with VND277 billion ($12.4 million), and the cargo insurance sector with VND202 billion ($9.08 million).

In 2016, Pjico targets stability instead of fast growth, expecting an increase of 5 per cent, to VND2.34 trillion ($105.2 million) in revenue, with a pre-tax profit of VND120 billion ($4.6 million), up 4.4 per cent on-year. 

January 2016 saw another successful sale in the insurance sector, between BIDV Insurance Corporation (BIC) and Fairfax Asia Limited, a subsidiary of Canadian Fairfax Financial Holdings Limited.

Notably, Fairfax Asia Limited bought a 35 per cent stake in BIC, equalling 41 million shares, to become a strategic investor.

VIR