Petrovietnam to divest 35% stake in non-life insurer PVI via auction

State-owned Petrovietnam will divest its entire 35% stake in PVI Insurance, with a full-lot public auction proposed. The sale is expected to take place by year-end or early 2026.

PVI provided updates on the plan during an analyst meeting on Wednesday, along with details on business performance. The firm is the only non-life insurance company in Vietnam. Its competitors are those providing both life and non-life insurance.

Under the prime ministerial Decision 1243/QĐ-TTg issued in October 2023 approving Petrovietnam's (PVN) restructuring scheme, the group must complete its divestment from PVI no later than December 31, 2025.

PVI CEO Nguyen Tuan Tu said that Petrovietnam's divestment advisory process is nearly complete. The energy group's members’ council will meet this week or next to finalize the plan, which could be executed as early as late December or extended to January 2026. The proposed method is a full-lot public auction.

On the Hanoi Stock Exchange, PVI shares closed Wednesday at VND88,900 ($3.37), up 72% since June and among the best performers in the insurance sector. Based on market value, PVN’s 35% stake is worth more than VND7.1 trillion ($269.3 million).

PVI vice chairman Duong Thanh Danh said the divestment would not negatively impact the company's operations. Senior personnel representing Petrovietnam may change depending on the new shareholder, but the company’s management and subsidiaries will remain unaffected as the controlling shareholder will not change after Petrovietnam’s exit.

Typhoon-related losses to weigh on Q4 earnings

CFO Tran Duy Cuong said the business results for the first nine months of 2025 were the best ever. Revenue reached VND21.6 trillion ($819.7 million), up 38% year-on-year, and post-tax profit of VND1.2 trillion ($45.32 million), up 45.5%. The group has already exceeded its full-year targets.

Insurance operations were the key driver, with profit surging 160% year-on-year, supported by 12% growth in primary insurance revenue and a doubling of reinsurance income, especially from overseas markets.

Cuong expressed caution for Q4/2025 and 2026 due to a series of typhoons hitting Vietnam. “From typhoons No. 9 to 15, each may be small, but the cumulative impact on the insurance market and PVI is significant,” he said, adding that this will affect the 2026 business plan.

Despite uncertainties, PVI expects to meet its 2025 targets of VND21.4 trillion ($813 million) in revenue and VND1.09 trillion ($41.33 million) in pre-tax profit.

The company forecasts consolidated revenue of about VND28.3 trillion, or 132% of plan, and pre-tax profit of VND1.58 trillion ($59.9 million), up 41% from 2024. Cuong noted that Q4 remains volatile and typhoon-related losses are still preliminary.

For 2026, PVI targets revenue of VND28.8 trillion ($1.09 billion), a modest increase as the company seeks to balance growth after a strong 2025. The insurance portfolio will be restructured to support sustainability over the next five-year phase.

Insurance profit is expected to decline due to higher reinsurance costs. Vietnam’s high-risk environment is pushing premiums up, while competitive pressure limits pricing increases, squeezing margins. Claims ratios may also rise.

In financial investments, PVI maintains a conservative allocation: 70% in deposits, 20% in bonds and the remainder in higher-risk assets. Management said interest rates largely remained low this year but edged higher in October. They expect no major changes in 2026 as monetary policy prioritizes stability.

PVI benefited from foreign-exchange gains in 2025, but this may not repeat next year. With Vietnam’s foreign reserves at around 13 weeks of imports - roughly $20 billion - pressure remains on exchange-rate management, alongside U.S. Federal Reserve rate decisions.