BIC in 2012: Good result despite of difficulties
2012 is a hard year for the economy as well as the insurance market, demand for insurance decreased, especially in traditional fields that used to take up high return ratio such as: construction, property, cargo insurance, ect. Gross insurance premium in non-life market only increased by 11%, which is the lowest increase in the past 10 years.
Despite the difficult context of 2012, BIC reported good business result. Specifically, the company reached 1.0169 trillion dong of revenue. Of which, revenue from insurance was 755.45 billion dong, up 10 percent compared to last year.
Profit before tax was 110.32 billion dong, exceeded 106 billion dong of the assigned plan. As a result, in terms of business effectiveness, BIC is one of the top insurance businesses which have the highest profitability ratio.
The compensation rate remains at a low level of below 40 percent.
In 2012, BIC continued the safe and sustainable development strategy. Against all challenges of the market, BIC carried out series of comprehensive methods as: decisively restructure operation organisation, maintain strict risk management policy, restructure product portfolio, effort to decrease cost.
Besides, to confront with the economy difficulties and pressure on traditional insurance fields, from 2011, BIC has prioritized retail market. As a result, 2012 witnessed impressive increase of 2 pioneering retail channels of BIC namely Bancassurance and online channel. Income from Bancassurance increased 60% and online channel increase 200% compared to 2011. New products have been researched and developed to meet diversified demands of customers, such as: Health and Personal Accident Insurance, Motor Vehicle Physical Insurance, Motor Vehicle Fire and Explosion Insurance, Comprehensive Personal House Insurance.
2012 has important changes in management team of BIC. Besides, methods to improve personnel, branding, sale policy have actively impacted on BIC’s performance.
Added to the good performance in Vietnam, 2 affiliates of BIC in Laos and Cambodia informed good result. Lao Viet Insurance Venture Company achieved total return of 6.766 million USD, increase by 51% on year, enhanced the 2nd rank in Laos; profit before tax was 589,029 USD. Cambodia Vietnam Insurance Company made profit after 3 years of establishment, maintained stable development, took up 7% of market share in Cambodia.
In 2013, BIC targets to raise 12 percent of revenue, 10 percent of profit growth at least and ensure the minimum 10 percent of dividend for shareholders. At the same time, BIC will take the advantages of the achievement in retail insurance, especially the relationship with the mother bank BIDV.
Besides, BIC will focus on strategic target in 2013 as: confirm the strategic partner, shift to Holdings structure, set up a life insurance company.
Despite the difficult context of 2012, BIC reported good business result. Specifically, the company reached 1.0169 trillion dong of revenue. Of which, revenue from insurance was 755.45 billion dong, up 10 percent compared to last year.
Profit before tax was 110.32 billion dong, exceeded 106 billion dong of the assigned plan. As a result, in terms of business effectiveness, BIC is one of the top insurance businesses which have the highest profitability ratio.
The compensation rate remains at a low level of below 40 percent.
In 2012, BIC continued the safe and sustainable development strategy. Against all challenges of the market, BIC carried out series of comprehensive methods as: decisively restructure operation organisation, maintain strict risk management policy, restructure product portfolio, effort to decrease cost.
Besides, to confront with the economy difficulties and pressure on traditional insurance fields, from 2011, BIC has prioritized retail market. As a result, 2012 witnessed impressive increase of 2 pioneering retail channels of BIC namely Bancassurance and online channel. Income from Bancassurance increased 60% and online channel increase 200% compared to 2011. New products have been researched and developed to meet diversified demands of customers, such as: Health and Personal Accident Insurance, Motor Vehicle Physical Insurance, Motor Vehicle Fire and Explosion Insurance, Comprehensive Personal House Insurance.
2012 has important changes in management team of BIC. Besides, methods to improve personnel, branding, sale policy have actively impacted on BIC’s performance.
Added to the good performance in Vietnam, 2 affiliates of BIC in Laos and Cambodia informed good result. Lao Viet Insurance Venture Company achieved total return of 6.766 million USD, increase by 51% on year, enhanced the 2nd rank in Laos; profit before tax was 589,029 USD. Cambodia Vietnam Insurance Company made profit after 3 years of establishment, maintained stable development, took up 7% of market share in Cambodia.
In 2013, BIC targets to raise 12 percent of revenue, 10 percent of profit growth at least and ensure the minimum 10 percent of dividend for shareholders. At the same time, BIC will take the advantages of the achievement in retail insurance, especially the relationship with the mother bank BIDV.
Besides, BIC will focus on strategic target in 2013 as: confirm the strategic partner, shift to Holdings structure, set up a life insurance company.