PVI Insurance sees record growth and productivity surge in H1
PVI Insurance sees record growth and productivity surge in H1 | Insurance Business Asia
Insurance News
PVI Insurance sees record growth and productivity surge in H1
Targets for H2 2024 unveiled
Insurance News
By
Roxanne Libatique
Vietnam-based insurer PVI Insurance has reported substantial financial growth and labour productivity for the first half of 2024 (H1 2024) during its mid-year conference held on July 9.
CEO Phạm Anh Đức highlighted that the company’s second-quarter revenue reached VN$12 trillion (US$473 million), surpassing the six-month target by 51.9% and reflecting a 65.7% year-on-year increase.
The company’s pre-tax profit amounted to VN$502 billion, exceeding the planned figure by 149.9% and marking a 42.6% growth.
The company was recently reclassified to an A- Financial Strength Rating and an “a-“ Issuer Credit Rating by global credit rating agency AM Best, indicative of its strong enterprise risk management (ERM) framework.
In March, the Ministry of Finance approved an increase in PVI Insurance’s charter capital to VN$3.5 trillion, boosting its financial capacity and supporting business expansion.
“This move also solidifies [our] position as the non-life insurance company with the largest charter capital in the Vietnamese market,” PVI Insurance said.
PVI Insurance’s labour productivity
In 2023, PVI Insurance reported an average labour productivity of VN$6.14 billion per employee annually, with business insurance productivity at VN$5.1 billion per employee.
The company said this figure is double that of its top six competitors, based on financial reports from the market.
PVI Insurance attributes its success to a comprehensive development strategy that emphasises efficiency and the application of international standards in corporate governance, such as IFRS and AM Best A-. The company’s expansion into e-commerce has also reduced labour costs and leveraged partnerships to expand its market reach.
PVI Insurance’s growth and labour goals
Looking ahead, PVI Insurance aims to further increase average labour productivity to VN$7.37 billion per employee in 2024, while targeting revenue growth to VN$20 trillion.
It has reaffirmed its commitment to enhancing labour efficiency, benefiting both employees and shareholders.
“Flexible policies regarding compensation and benefits have helped PVI Insurance to maintain and strengthen employee satisfaction and commitment. Performance evaluations based on working skills, responsibilities, and individual contributions are also crucial factors in creating a fair working environment to encourage creativity,” it said. “These efforts have helped PVI Insurance not only to lead in revenue but also to consolidate its leading position in terms of labour productivity in the Vietnamese non-life insurance industry.”
During the mid-year review, PVI Insurance also reaffirmed its dedication to achieving its targets for the second half of 2024. It plans to focus on customer service stability, international market expansion, and strengthening reinsurance activities.
“The strategy includes enhancing management models and leveraging information technology to optimise efficiency and maintain market leadership,” it said.
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