2014: BIC on a growth by 24%
In 2014, although the domestic economy in general and the non-life insurance market in particular continued to face a lot of difficulties, BIC has successfully completed its business plans for 2014 with positive business results.
Total insurance revenue of BIC parent company reached 1,112.535 billion VND, up 24.31% compared to that in the 2013 on completion of 111.2% of the plan assigned by General Meeting of Shareholders. In particular, original insurance revenue reached 988.275 billion VND which is equal to an increase of 24.74% compared to that of 2013. Consolidated pre-tax profit reached 137.067 billion VND, up 9.14% compared to that in the 2013 on completion of 105.4% of annual plan. Retained loss ratio was 37.78%, which allows BIC to continuously maintain the safety of the insurance business.
In 2014, the financial capacity of BIC continued to be enhanced through two increases in its chartered capital, thereby increasing chartered capital to more than 762 billion VND. On a basis of positive business results and good financial situation in the last 5 years, A.M. Best, one of the leading credit rating agencies in the world has assigned such a great credit rating to BIC for the first time. Accordingly, BIC financial strength grading is rated at B+ (stable financial capacity) and issuer credit rating at bbb- (Company maintains the good capacity to meet its financial obligations). Outlook assigned to both ratings is Stable.
To expand its business, based on the approval of the Ministry of Finance, as of 1st January 2015, BIC set up and put 03 wholly-owned subsidiaries into operation: BIC Northwest, BIC Lao Cai and BIC Cuu Long, which brought the total number of subsidiaries up to 25 and Sales Departments up to more than 120 across the country.
The solutions for restructuring risk portfolio, product portfolio and customers were also implemented by BIC in a uniform and efficient way and focused on individual, small and medium-sized enterprise customers through the development of retail products suited to the needs of the market. New retail-oriented distribution channels such as bancassurance, online insurance at website www.baohiemtructuyen.com.vn continued to grow impressively in 2014 compared with 2013. BIC has piloted telesales channel which had positive initial results.
Business results of two overseas subsidiaries also achieved good results, especially LVI, of which profit was 1,363 million USD, up 82% compared to 2013 while ROE reached 23.6%.
In 2015 which is expected to be a year of economic prosperity, BIC has set targets for a minimum of 16% revenue growth, 144 billion VND consolidated profit, completion of the project of sale of shares to strategic investors and putting a Representative Office in Myanmar into operation, raising its credit score, commemorating its 10th anniversary of the establishment with new breakthrough and success.