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Vietnam's first reinsurance company ranks high

Released at: 15:33, 04/05/2018 What's on

Vietnam's first reinsurance company ranks high

Photo: Vinare

VINARE is improving its reputation in Vietnam's reinsurance market.

by Thanh Thanh

Established in September 1994, Vietnam National Reinsurance Corporation (VINARE) was the first reinsurance company in Vietnam’s insurance market. Since 2005, VINARE has been officially operating in the form of a joint stock company in which State Capital Investment Corporation (SCIC) holds 40.36 per cent stake and foreign strategic partner Swiss Re holds 25 per cent stake.

VINARE activities include specializing in reinsurance for the local and international market, supporting the development of the local insurance market, contributing to the growth of businesses of the local market and making financial investments.

Since its establishment twenty three years ago, VINARE has made many outstanding achievements and has been honored with many awards from the State such as the Third Class Independence Order and the First, Second and Third Class Labor Orders. In reinsurance, our gross written premium has had an annual average growth rate of 11 per cent and our net written premium has had an annual average growth rate of 17 per cent.

In financial investment, investment income has had an annual average growth of 23 per cent. Average profit before tax has been growing at 19 per cent year-on-year. By the end of 2017, VINARE had paid-up capital of VND1.3 trillion ($57.1 million), equity capital of VND2.6 trillion ($114.2 million) and assets worth VND6.2 trillion ($272.3 million). 

VINARE took the lead in carrying out the policy of restructuring state-owned enterprises with a successful equitization in 2004, raised additional capital and selected a strategic partner in 2007. Swiss Re, the biggest reinsurer in the world with 150 years of history, was selected as the only foreign strategic shareholder of VINARE. Together with a strategic cooperation agreement, Swiss Re has facilitated VINARE to access experience, know-how and the most advanced insurance products in the world, helping VINARE to enhance its competitiveness and reputation in the local and international insurance market. Selecting their strategic partner was voted as “The most successful transaction of Vietnam in 2008” by Finance Asia.

A.M. Best has assigned VINARE with a financial strength rating of “B++” (Good) and an issuer credit rating of “bbb” (stable outlook). According to A.M. Best, the ratings reflect “VINARE’s solid risk-based capitalization, consistent operating performance, sound liquidity and strong presence in Vietnam’s non-life reinsurance market”.

VINARE shares (VNR) have been listed on the Hanoi Stock Exchange since 2006. The Corporation has always taken the lead in enhancing the quality of corporate governance, ensuring transparency of information and shareholder interest. VINARE has been consistently honored in the Top 30 Transparent Enterprises of the Hanoi Stock Exchange since 2014.

VINARE was part of the Top 500 most profitable companies in 2017 and ranked 5th out of 14 most profitable insurance companies according to the Profit 500 of Vietnam Report.

VINARE was also honored as the Best Financial Indicators insurance company by the enterprise evaluation program of Hanoi University of Business and Technology and Vietnam Association of Accountants and Auditors. The Global Brands magazine headquartered in the United Kingdom also selected VINARE as “Best Reinsurance Brand Vietnam 2017”.

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