BIC's Annual General Meeting 2014
- BIC’s business performance in 2013 and the business plan of 2014
- Activities of Board of Directors (BOD) and Board of Supervisors (BOS) in 2013 and their Plans of 2014
- Remuneration for BOD and BOS in 2013 and Plan of 2014
- Financial settlement, profit distribution and dividend payment in 2013, its plan of 2014
- Plan of shares issuance to strategic shareholders and to existing shareholders
In CEO’s report, Mr Ton Lam Tung said that, in 2013 BIC has faced a lot of challenges due to difficulties of Vietnam macro economy in general and Insurance industry in particular. In such a context, thanks to many efficient business solutions as well as all great efforts of BIC’s members, BIC fulfilled almost business plan assigned by AGM, especially in term of insurance revenue. Total insurance premium of Parents Company (BIC) increased more than 2.5 times in comparison with the average growth rate of non-life insurance market.
Some remarkable results were mentioned in CEO’s report, including: BIDV and BIC has signed a contract with Metlife Corporation in USA to establish BIDV Metlife insurance Joint-Venture firm; increasing the ownership in Lao Viet insurance Joint-venture firm up to 65%; establishing BIDV Dong Do insurance company to increase number of subsidiaries and sales departments to 22 ones and 104 depts.
According to Mr Ton Lam Tung, in 2014, BIC will set the business plan of total insurance revenue of Parents Company 1,000 billion dong at least and profit before taxes after consolidated 130 billion dong.
Additionally, the project of finding strategic partners and increasing chartered capital will be speeded up in this year. Some other works such as A.M.Best Credit rating project, together with BIDV putting BIDV-Metlife Joint-Venture firm into operation and procedure for purchasing shares of Cambodia Vietnam insurance company (CVI) will be completed in 2014 also.
In BOD’s presentation, Mrs. Nguyen Thi Thanh Van – a Member of BOD declared that, besides responsibilities of managing and supervising BIC’s operation for fulfillment of the assigned business plan as regulated, in this year, BOD has been restructured with the appointment of one independent BOD member. In the end of 2013, BIC has issued 3,300,000 shares for ESOP program to all staffs. Up to now, procedure for the license modification of securities depository and listing additional shares has been completed. On behalf of BOD, Mrs. Van also announced to shareholders the plans of financial settlement, profit distribution and dividends payment in this year. 100% of shareholders agreed with these BOD’s reports.
One of important issues in this AGM session that was submitted by Mr. Pham Quang Tung – Chairman of BOD to shareholders, is the plan of increasing chartered capital in 2014. According to BOD’s opinion, the increase of Chartered capital is necessary to meet requirement of business expanding. It also helps BIC gain the best credit rating result, increase capital contribution in two joint-ventures in oversea and in BIDV-Metlife insurance firm as well as attract more attention from foreign strategic partners. Realizing this necessary, the plan of increasing chartered capital up to 1,000 billion dong was submitted to AGM for their approval through dividend paid by shares, issuing maximum 30% of shares to strategic shareholders.
This plan of shares issuance to strategic shareholders was proposed to AGM with these following details: the stock price applied for strategic shareholders is not less than its face value and the minimum level has to be equal to its market value at the time of selling stocks, all decisions regarding to selecting and selling stocks to strategic shareholders are suggested to made by BOD instead of AGM’s authority. All these plans of chartered capital increase and stock issuance to strategic shareholders were approved by 100% of participants.
In the discussion part, the Presidium was received many questions from shareholders regarding to some important issues, as details: risk management, plan of selecting foreign strategic partners, business plan of 2014 and expectation of the company when investing capital in two joint-ventures in Laos and Cambodia. Mr. Pham Quang Tung, on behalf of BOD, cleared up all shareholders’ concerns. In Mr. Tung’s sharing, the business objective of BIC in the coming year 2014 is enhancing revenue growth that is higher than the average growth rate of the market based on BIC’s long – term business principle of secured risk management and sustainable development. In 2014, BIC will set a target of expanding the business to increase market share in both of domestic and oversea market as its priorities besides its efficiency – the most important target.