PVI's reinsurance division achieves outstanding business performance in the first six months. — Photo courtesy of PVI
PVI Insurance has demonstrated outstanding performance in the first half of 2024, achieving significant milestones highlighted during its mid-year conference on July 9 in Hạ Long City.
CEO Phạm Anh Đức reported that the company's second-quarter revenue exceeded VNĐ12 trillion (US$473 million), surpassing the 6-month plan by 51.9 per cent and showing a growth of 65.7 per cent. Pre-tax profit amounted to VNĐ502 billion, exceeding the plan by 149.9 per cent and increasing by 42.6 per cent.
PVI Insurance continues to lead the non-life insurance market in Việt Nam, boasting the fastest growth rate. This is further validated by its reclassification to an A- Financial Strength Rating and an "a-" Issuer Credit Rating by AM Best, reflecting the company's robust and effective enterprise risk management (ERM) system.
The increase in charter capital to VNĐ3.5 trillion, approved by the Ministry of Finance in March 2024, underscores PVI Insurance's commitment to enhancing financial capacity and expanding business operations. This move also solidifies PVI Insurance's position as the non-life insurance company with the largest charter capital in the Vietnamese market.
Impressive labour productivity
PVI Insurance maintains its leadership in the non-life insurance sector, ranking first in Việt Nam's Top 10 prestigious non-life insurance companies in 2024, as voted by Vietnam Report. The company not only leads in revenue but also asserts its position with excellent average labour productivity.
In 2023, PVI Insurance achieved an impressive average labour productivity of VNĐ6.14 billion per person per year, with business insurance labour productivity at VNĐ5.1 billion per person per year. This productivity level is double that of its competitors in the Top 6, according to financial reports from market enterprises.
To achieve these achievements, PVI Insurance has implemented a comprehensive development strategy focused on efficiency and the application of international standards in corporate governance such as IFRS and AM Best A-.
Expanding distribution channels through e-commerce has also helped the company to reduce labour costs and utilize the social insurance collection system and partnership with the Vietnam Farmers' Union to broaden its insurance market reach.
PVI Insurance aims to increase average labour productivity further in 2024 to VNĐ7.37 billion per person per year while targeting revenue growth to VNĐ20 trillion. This reflects the company's commitment to maintaining and enhancing labour efficiency, thereby adding value to both employees and shareholders.
Additionally, flexible policies regarding compensation and benefits have helped PVI Insurance to maintain and strengthen employee satisfaction and commitment. Performance evaluations based on working skills, responsibilities and individual contributions are also crucial factors in creating a fair working environment to encourage creativity.
These efforts have helped PVI Insurance not only to lead in revenue but also to consolidate its leading position in terms of labour productivity in the Vietnamese non-life insurance industry.
During the mid-year review, PVI Insurance reiterated its commitment to accelerating its targets for the second half of 2024, focusing on customer service stability, international market expansion, and reinforcing reinsurance activities. The strategy includes enhancing management models and leveraging information technology to optimise efficiency and maintain market leadership. — VNS