Hanoi Re celebrates profit milestone in financial results

Hanoi Re celebrates profit milestone in financial results | Insurance Business Asia

Reinsurance

Hanoi Re celebrates profit milestone in financial results

Pretax profit expected to surge by more than 30%

Reinsurance

By
Kenneth Araullo

Hanoi Re has announced substantial growth in its financial results for 2023, with a 12% increase in revenue reaching VND2,990 billion (approximately US$122.8 million) and a notable 35% rise in pretax profit to VND256 billion.

This performance, the company says, marks the highest profit level since its inception in 2011 and signifies a significant improvement in its combined ratio to below 95%.

In a news release, Hanoi Re reported a controlled combined ratio of 94.6% for 2023, an improvement from 95.2% in 2022, despite the global insurance market facing increased loss ratios amid global uncertainties and geopolitical instabilities.

The company attributed this performance to its adherence to stringent underwriting guidelines and its focus on professional risk engineering supported by an experienced workforce.

It successfully increased its charter capital, significantly boosting its total equity by over 60% and strengthening its financial foundation. Additionally, Hanoi Re placed greater emphasis on insurance auxiliary activities and risk engineering consulting, receiving high recognition from clients for its professional services. The year also marked the company’s rebranding from PVI Re to Hanoi Re, celebrated with a launch ceremony attended by numerous local and international partners.

Looking at 2024, Hanoi Re outlined a challenging business plan in anticipation of difficulties in both the local and international insurance markets.

Phung Tuan Kien, chairman of Hanoi Re, emphasized the company’s commitment to rigorous risk assessment and the role of its advanced enterprise risk management system in supporting sustainable development and delivering value to customers and shareholders.

Trinh Anh Tuan, CEO of Hanoi Re, described 2023 as a challenging year for the Vietnamese insurance market, yet the company managed to exceed its financial targets through strategic initiatives. These included leveraging additional owner’s equity to enhance financial investment efficiency, boosting retention capacity, and expanding both local and overseas reinsurance activities.

The company’s success in 2023 was recognized during a visit by Torsten Leue, CEO of Talanx Group, and Edgar Puls, CEO of HDI Global SE, who congratulated Hanoi Re on its achievements.

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