On 22nd April 2022, Vietnam National Reinsurance Corporation (VINARE) held the Annual General Meeting of Shareholders 2022 where all key issues were passed with the majority of votes.
In 2021, VINARE achieved impressive business results with gross written premium reaching VND 2,246 billion, representing an increase of 11.2% against the assigned target. Premium volume from core business posted 7.2% growth year-on-year, exceeding the expectation of the management. Pre-tax profit grew 14.2% year-on-year to VND 408 billion as both underwriting profit and investment returns met the target. The dividend payout ratio for the year is 13% which is slightly higher than projected.
In the review period 2021, VINARE’s financial strength rating (FSR) is at B++ (Good) and the issuer credit rating (ICR) is at “bbb+” (by AM Best). VINARE is one of the first two insurance/reinsurance companies in Vietnam’s insurance market to have its financial strength rated by an international rating agency since 2013 and continuously maintains the rating B++ since then, reflecting its strong financial position and good operating results, in which AM Best emphasized as follow:
- The company’s balance sheet strength reflects risk-adjusted capitalisation at the strongest level at year end 2021, as measured by Best’s Capital Adequacy Ratio (BCAR).
- Furthermore, VINARE continues to receive strong support from its key shareholders including State Capital Investment Corporation in terms of business strategy and corporate governance; and Swiss Reinsurance Company Ltd (Swiss Re) in terms of underwriting and risk management expertise as well as product innovation.
- AM Best considers the company’s ERM to be appropriate given VINARE’s clear risk appetite, developed reporting system and prudent risk management approach. With technical support from Swiss Re, VINARE has been able to utilise an economic capital model to monitor and manage the company’s key risks properly.
In terms of financial capacity, from the initial capital of 40 billion VND at the establishment, the indicators showing the financial capacity of VINARE have grown significantly: Total assets reaching VND6,915 billion; Charter capital VND1,507 billion; Equity VND3,286 billion. Market capitalization as of December 31, 2021 amounting to VND 4,748 billion.
In 2021, VINARE further improved the corporate governance structure with the establishment of the Internal Audit, which will help VINARE detect and prevent risks during its operating performance.
VINARE has also focused efforts on core capacity building, working closely with partners to develop new products that meet market demand, which will help bring more revenue in the medium and long term.
During the last year, VINARE increased its paid-up capital to over VND1,507 billion from surplus and paid out dividend of 15 per cent to its shareholders. The price of VINARE share also experienced a spike in the stock market which closely reflected its true value.
In 2021 VINARE was listed in the Top 10 in Banking – Financial Services at the Announcement and Honoring Ceremony of Top Brands 2020 – 2021. VINARE was also listed in the PROFIT500 ranking – Top 500 most profitable enterprises in Vietnam in 2021 and honored as one of the 389 listed companies that meet the information disclosure standards on the stock market in 2021 (IR Awards 2021). VINARE’s Annual Report was honored in the category of “Outstanding progress” at the Listed Enterprises Voting 2021.