BIC held Annual General Meeting of Shareholders 2016
- Approval of business result for 2015 and business plan for 2016.
- Financial settlement, distribution of profit after tax and dividend payment plan for 2015 as well as dividend payment plan for 2016.
- Approval of operation report of the Board of Directors and Board of Supervisory for 2015 and operation plan for 2016; Remuneration payment result for the Board of Directors and Board of Supervisory for 2015 and remuneration payment plan for 2016;
- Approval of business model transformation into BIC Holdings;
According to the report of CEO Tran Hoai An at the meeting, in 2015, gross direct premiums of non-life insurance market rose by 17.18% whereas direct premiums of BIC rocketed by 29.2% - the highest growth rate of BIC since its equitization. Besides increase in direct premiums, market share of BIC was improved and reached 4% in 2015. Besides, criteria of management efficiency such as operation cost and premium receivables slumped. Moreover, BIC fulfilled other business goals in 2015 including establishment of Representative office in Myanmar, completion of separate issue of shares to foreign strategic investor - FairFax, credit re-rating of B+ by A.M.Best, putting the 26th wholly-owned subsidiary - BIC Ben Thanh into operation, awarded Third-Class Labor Medal by the President of the Socialist Republic of Vietnam, etc.
Based on optimistic business performance in 2015, BIC aimed to reach 22.6% of growth rate of direct premium, VND 230 billion of consolidated profit and minimum dividend yield of 8% in 2016. In addition, BIC set other important goals such as movement of BIDV Insurance Company’s head office to Ho Chi Minh City, business model transformation into BIC Holdings, realization of technical supports from its strategic investor - FairFax, completed receipt of 51% of shares in CVI, etc. An important issue remarkably concerned by investors and journalists at this Meeting is transformation of BIC’s business model into BIC holdings. According to Mr. Pham Quang Tung - Chairman of BIC, with participation of the foreign strategic shareholder as well as current strong capital resource and business scale of BIC, it is time for BIC to restructure its capital and transform business model to separate roles of capital management, strategies and direct business. According to contents submitted to the Meeting, current BIDV Insurance Corporation will be transformed into a Holding company expectedly named as BIDV Finance - Insurance Joint Stock Company operating under the Enterprise Law and a Subsidiary named as BIDV Insurance One Member Company Limited operating under the Law on Insurance Business. The Holding Company will enjoy the whole capital, contributed capital and investment portfolios of BIDV Insurance Corporation at present and make capital investment into its Subsidiary in conformity with insurance business scale of the Subsidiary. On the other hand, the Subsidiary will hold the whole rights, obligations and responsibilities for non-life insurance business of BIC at present. Additionally, 65% of LVI’s capital and 51% of CVI’s capital will be held by the Holding Company. According to the proposed transformation schedule, legal procedure completion, resource transfer and organizational consolidation for the launch of new business model will be accomplished in the fourth quarter of 2016.
Chairman and CEO of BIC answered all questions of shareholders openly and transparently
The discussion session at the Meeting was enthusiastically participated by shareholders. Major issues questioned and concerned by shareholders include solutions for loss ratio management and business goal fulfillment in 2016, ownership increase plan in CVI, business model transformation into BIC Holdings, strategies of BIC with support from Fairfax, dividend yield in the following years, etc. Chairman and CEO of BIC chaired the discussion session and answered all questions of shareholders openly and transparently. “BIC set goals of effective business and sustainable development as its first priority and premiums increase only results from effective risk management and improved business performance,” Chairman of BIC emphasized. “With participation of strategic shareholder - Fairfax and BIDV, BIC will surely change and make strong improvements in the near future to improve its productivity and competitiveness for goal achievement.”
At the voting session, contents submitted to the Meeting and major issues reported by the Board of Directors and Board of Supervisory were agreed by the General Meeting of Shareholders with a high number of approval votes.