Vietnamese insurance firm PVI, a member of the state-owned Petrovietnam, is making preparations to shift its shares listed on the Hanoi bourse to the Ho Chi Minh Stock Exchange, and is committed to improving its earnings per share (EPS).
The move is part of the business plans the Hanoi-headquartered insurer unveiled Monday at its "Resilient Leaders" investor conference, at which PVI also announced its 2022 business results and strategic development directions.
PVI reported its total assets in 2022 at more than VND26 trillion ($1.1 billion); total revenue exceeded VND14 trillion ($588.7 million), up 30% compared to 2021, and pre-tax profit hit VND1.1 trillion (about $46.26 million), which represented growth for five consecutive years.
Non-life insurance remained the largest contributor to PVI's total revenue, accounting for 70%, with original premium revenue in 2022 surpassing VND10 trillion ($420.5 million), up 21% year-on-year, and placing the 2017-2022 combined annual growth rate (CARG) at 8.4%.
PVI held 14.8% of the Vietnamese non-life insurance market at the end of the last financial year, thanks to the continued consolidation of corporate governance towards transparency and sustainable development.
The firm’s reinsurance business enjoyed 50% year-on-year growth in premium revenue, or VND2.4 trillion (more than $101 million), and a 2017-2022 CAGR of 14%. The revenue accounted for 17% of PVI’s total last year, making PVI Re the top leader in Vietnam’s reinsurance segment for the first time.
In terms of investment, PVI has shifted its investment portfolio to fixed-income assets and reduced investment in stocks. In 2022, profit from financial operations contributed more than 63% to PVI’s total profit before tax, also maintaining positive five-year growth.
"In the future, PVI will maintain a flexible asset allocation strategy to realize our dual goals, which are high investment efficiency and better risk control," PVI leaders stated in a report.
At the investor conference, PVI chairman Jens Holger Wohlthat said in addition to high investment efficiency in 2022, PVI pursued a prudent investment strategy. This included risk management measures to minimize risks and defaults from partners against the 2022 overall picture of market turbulences.
Regarding PVI shares, he said the board of directors is weighing tactical moves for providing information to Vietnam and other Southeast Asian countries to make the stock more attractive.
"We are preparing to list PVI shares on the HCMC bourse (HoSE) as a replacement for the Hanoi exchange (HNX). PVI is committed to efforts to increase EPS, dividend per share, and stock value in an efficient manner,” Wohlthat told the conference.
“We are committed to efficient operations, safe investment activities, and paying high dividends in cash. We may consider paying in shares when conditions allow us to, and distribute at least 90% of profit after tax to shareholders," he said.
PVI shares closed the Tuesday morning trading session on HNX at VND50,000 ($2.1) per unit. Petrovietnam is the majority shareholder of the insurer.