Fairfax Asia-backed insurer BIC to hike capital base for 1st time in decade

BIDV Insurance Corporation (HoSE: BIC) plans to increase its charter capital for the first time in 10 years to strengthen its financial capacity and competitiveness.

BIC has maintained its charter capital at VND1.17 trillion ($45.9 million) since 2015, when the company issued 41 million shares to Canada-based Fairfax Asia Limited at VND26,323 ($1.03) per share, or 35% of its charter capital.

Therefore, the BIC board has proposed a capital hike roadmap 2025-2030 while maintaining the current stakes of its two major shareholders, BIDV (51%) and Fairfax (35%).

As part of this roadmap, the company intends to use retained earnings to issue stock dividends at an annual rate of 10% from 2025 to 2030.

Currently, BIDV Insurance comes fifth in Vietnam’s non-life insurance market in terms of revenue.

This year, the insurer aims for VND5.6 trillion ($219.48 million) in insurance premiums, up 10.5% year-on-year, and VND555 billion ($21.75 million) in pre-tax profit, down 14.6%.

BIC also plans to establish new member units in Hanoi and Ho Chi Minh City to expand its insurance business network. It also intends to increase its stock holdings in its investment portfolio amid low deposit interest rates.

In 2024, BIC earned VND4.26 trillion ($167.12 million) in insurance premiums, up 17% year-on-year, and VND499 billion ($19.56 million) in net profit, up 9%.