Insurers” 2024 revenue targets point out warning

PetroVietnam Insurance coverage Company (PVI) handed an bold income goal of $725 million for 2024 at its AGM on March 21, a report determine representing an 8.17 per cent improve on-year.

If profitable, this yr would mark the fourth consecutive yr PVI has managed steady income development to keep up its pole place on scale amongst non-life insurers.

The corporate, nonetheless, was prudent in setting its pre-tax revenue goal at $45 million, down greater than 13 per cent in comparison with final yr.

Insurers' 2024 profit targets indicate caution

For its half, Petrolimex Joint Inventory Insurance coverage Firm (PJICO) set its 2024 pre-tax revenue goal at $12 million, practically equal to 2023’s precise revenue determine at $11.8 million.

Based on Nguyen Thi Huong Giang, CEO of PJICO, a pointy on-year decline in financial institution rates of interest of about 35 per cent has resulted in a big discount in earnings.

“Our resolution to that is to hunt cooperation with banks providing beneficial lending charges that can optimise funding effectivity, in addition to often reviewing our monetary funding portfolio for well timed capital divestitures and inventory gross sales,” stated Giang.

Low deposit charges at banks are deemed a significant factor affecting insurers’ monetary earnings, as insurers typically allocate a big proportion of their funding portfolio into deposits.

In the meantime, BIDV Insurance coverage JSC (BIC) has set its 2024 income goal at $232 million and pre-tax revenue goal at $22.5 million, up greater than 14 per cent in income and 4.5 per cent in revenue in comparison with 12 months in the past.

Final yr, BIC noticed a virtually 20 per cent soar in its income, exceeding $24 million, through which curiosity earnings noticed a 58 per cent hike in comparison with 2022.

Navy Insurance coverage Firm (MIC), nonetheless, is a uncommon case which expects a pointy hike in its 2024 income and revenue targets, rising at 33 per cent and 25 per cent on-year.

MIC assumed that the low-interest surroundings this yr would additionally positively have an effect on the inventory market, in addition to only a rebound within the income of listed corporations.

2023 was a turbulent yr for Vietnam’s insurance coverage markets. Whole income of the non-life insurance coverage market was estimated at $2.96 billion, up barely by 3 per cent on-year.

Based on statistics from 14 listed insurers, their whole premium income in 2023 rose roughly 6 per cent, larger than the non-life insurance coverage sector common.

MoF not finished with scrutiny of insurers MoF not completed with scrutiny of insurers

The Ministry of Finance is dedicated to ongoing inspections of insurance coverage corporations, having accomplished examinations on two life insurers and with a number of others both beneath overview or slated for scrutiny imminently.

Banks remain prudent about 2024 targets Banks stay prudent about 2024 targets

Main state lender Vietcombank has simply launched its 2023 figures, with outcomes throughout quite a lot of areas exceeding expectation. The Hanoi-headquartered financial institution noticed $59.5 billion in deposit quantity, up over 12 per cent on-year, and excellent balances amounting to $53.58 billion, displaying a ten.6 per cent soar on-year.

AWS targets Vietnam for 2024 expansion AWS targets Vietnam for 2024 growth

Amazon Net Companies (AWS) is ramping up its presence in Vietnam, specializing in cloud adoption and nurturing native expertise to drive the nation’s digital transformation and pave the best way for future technological developments and financial prosperity.

By Tune Thuy

Related Articles


Please enter your comment!
Please enter your name here

Latest Articles