Photo: Viet Tuan
Bao Viet Thang Long and Bao Viet Trang An raise its total in Vietnam to 75.
Bao Viet Holdings (BVH) has officially opened two new branches in Hanoi - Bao Viet Thang Long and Bao Viet Trang An - increasing its total throughout the country to 75.
The openings are within the network expansion plans of the insurer. Inheriting the experience of existing branches, Bao Viet Thang Long and Bao Viet Trang An will be highly competitive and will develop quickly. Expected revenue in each branch this year is around VND100 billion ($4.4 million), with 60 per cent coming from retail.
With a streamlined retail model, the advantages the new branches possess are direct and indirect sales, with create a spillover effect on other branches within the network. “Fulfilling the target of expanding the network, BVH focuses on the retail business to make the corporation become the number one insurance brand,” Mr. Phan Kim Bang, Chairman of BVH’s Board of Directors, told the opening ceremony. “BVH is strengthening its development and expanding and consolidating its network to actively prepare for a boom in Vietnam’s insurance industry during the 2016-2020 period.”
Deputy CEO of 3C, Mr. Le Sy Hai (left), signs an insurance policy with Bao Viet Trang An CEO Mr. Duong Thanh Tung.. Photo: Viet Tuan
During the ceremony, Bao Viet Thang Long signed a motor vehicle insurance policy with Hanoi Taxi, while Bao Viet Trang An partnered with Computer Communication Control 3C Incorporation to provide insurance for export products and inland transport. BVH now has more than 300 insurance offices and 30,000 agencies, being the only insurer that covers the entire 63 cities and provinces in Vietnam.
The corporation’s consolidated revenue was estimated at VND24 trillion ($1 billion) in 2016, equal to 105 per cent of its annual plan, while after-tax profit also exceeded plans. Its share price has seen solid gains in recent times. In the first half of last October it increased 20 per cent and reached a one-year high of VND72,000 ($3.2). At the close of trade on March 16 it stood at VND58,900 ($2.6).
Life insurance players in Vietnam made an impressive showing in 2016, with growth reaching 37 per cent, the highest in a decade. Figures from the Insurance Supervisory Authority reveal that premiums totaled around VND86 trillion ($3.8 billion) last year, representing a rise of 22.74 per cent over 2015. In particular, total revenue for non-life insurance was VND36.4 trillion ($1.6 billion), up nearly 14.7 per cent, while revenue from life insurance was over VND49.2 trillion ($2.2 billion), up 28.4 per cent.
Vietnam’s insurance industry remains dominated by Bao Viet and Prudential. Prudential leads the market in terms of total insurance premiums while Bao Viet has the strongest book of new business.
Bao Viet is gaining momentum in terms of a more stable workforce and renewed robust growth while maintaining its niche at the top. Prudential and its new leader must contend with certain challenges in 2017, in particular how to compete within the rigid insurance market in the country. Two other players, Dai-ichi Life Vietnam and AIA Vietnam, have also had a stronger presence in recent years.
Vietnam’s insurance market is poised for robust double-digit growth this year, expected at more than 20 per cent, bolstered by an improved economic outlook and government policies promoting the services sector.