2010: BIC meets major annual targets
BIC reported that total accumulated income as of 31 December 2010, stood at 875.570 billion dong, a 40% increase compared to 2009. Income from underwriting operations increased by 36% year-on-year and reached a total of 552,541 billion dong. In Quarter 4/2010 (following BIC’s transformation into a joint stock corporation), income from underwriting totaled 1058,977 billion dong, an increase of 84% compared to the same period of 2009, achieving 106% of the target set at the first shareholder meeting; income from financial investments amounted to 64,994 billion dong, 130% of the targeted figure.
Total pre-tax profits for 2010 totaled 32,481 billion dong, with Q4/2010 registering 27.046 billion dong - equivalent to 108% of the target agreed at the first shareholder meeting. The low profits for the first nine months of the year resulted from the corporation having to accumulate a reserve for future unexpected expenditures or liabilities and resolve some finance problems after incorporation as regulated by the law.
BIC’s total assets as of 31 December 2010 were valued at 2,506.849 billion dong dong, a 38% on 2009. Owned capital stood at 682.652 billion dong, a 32% year-on-year increase. Total technical reserves totaled 251.299 billion dong, a 42% increase compared to last year.
In terms of products, property and engineering, motor vehicle insurance remained BIC’s main products, both featuring high growth rates and accounting for the largest ratio of total revenue.
Traditional channels such as agencies, direct sales and brokering still play key roles and registered rapid rise, with 2010 marked by record growth in Bancassurance and the volunteering adoption of e-commerce solutions to sell insurance products via ATM, SMS, Internet, and telephone.
In a bid to widen operations and improve customer services, BIC opened new 15 business offices in 2010. Together with 2 new wholly- owned subsidiaries; namely BIC Sai Gon and BIC Bac Bo which began operations from 1 January 2011, BIC’s network expanded to 21 wholly owned subsidiaries, 74 business offices; employing over 500 staff and using 1,000 agencies nationwide. BIC’s overseas member companies also recorded optimistic results, with LVI attaining second place in terms of market share in Laos, and CVI accounting for 4% of market share in Cambodia.
In term of customer services, BIC dramatically invested in improving the quality of services offered. Parallel with upgrading the call center performances, and the introduction of free customer hotlines, BIC has implemented a range of promotional programs which has proved popular with consumers. Indemnity performance has significantly improved with efforts made to simplify procedures and speed up complaint resolution methods.
BIC Chairman and CEO Mr Pham Quang Tung, summarized BIC’s annual performance: “One of the biggest successes for BIC in 2010 was the incorporation in the context of sluggish stock market. Following that, BIC rapidly restructured and improved business management to improve efficiency, and lay the foundation for sustainable development. The good growth-rate recorded in underwriting performance saw the corporation register results 2.5 higher than the market average.”
In terms of 2011, BIC has set a revenue target of 1,000 billion dong dong, in which 716 billion dong would derive from underwriting, with pre-tax profits of 100 billion dong, an increase in offices to 100, and a share dividend of 10%. BIC will also focus on seeking a strategic partner, and implement a credit rating. In December 2010, BIC’s application to reserve the BIC security trading code was accepted by the VSD (Vietnam Security Depositing Center). BIC is currently accelerating the application procedures to list its stock by late March of 2011 as according to commitments made to shareholders.