Hanoi, Vietnam — PVI Insurance, a leading non-life insurer in Vietnam, has announced significant financial growth and increased labor productivity for the first half of 2024, according to a mid-year conference held on July 9.
CEO Phạm Anh Đức revealed that the company achieved second-quarter revenue of VN$12 trillion (US$473 million), surpassing the six-month target by 51.9% and marking a 65.7% increase compared to the previous year.
Pre-tax profits soared to VN$502 billion, exceeding the planned figure by 149.9% and representing a 42.6% year-on-year growth.
Leadership in Vietnam’s Non-Life Insurance Market
PVI Insurance continues to dominate Vietnam’s non-life insurance sector, boasting the fastest growth rate in the industry. The company’s financial strength was recently recognized by AM Best, which upgraded its Financial Strength Rating to A- and its Issuer Credit Rating to “a-,” reflecting a robust 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, enhancing its financial capacity and supporting further business expansion. “This move solidifies our position as the non-life insurance company with the largest charter capital in the Vietnamese market,” the company stated.
Surge in Labor Productivity
PVI Insurance reported an impressive average labor productivity of VN$6.14 billion per employee in 2023, with business insurance productivity at VN$5.1 billion per employee. This figure is double that of its top six competitors, according to market financial reports.
The company attributes its success to a comprehensive development strategy focusing on efficiency and the application of international standards in corporate governance, including IFRS and AM Best A-. Additionally, the expansion into e-commerce has reduced labor costs and broadened market reach through strategic partnerships.
Future Growth and Productivity Goals
Looking ahead, PVI Insurance aims to increase average labor productivity to VN$7.37 billion per employee in 2024 and target revenue growth to VN$20 trillion. The company remains committed to enhancing labor efficiency to benefit both employees and shareholders.
“Flexible policies regarding compensation and benefits have helped PVI Insurance maintain and strengthen employee satisfaction and commitment. Performance evaluations based on skills, responsibilities, and individual contributions are crucial in fostering a fair working environment that encourages creativity,” the company stated. “These efforts have not only led to revenue leadership but also consolidated our top position in labor productivity within the Vietnamese non-life insurance industry.”
During the mid-year review, PVI Insurance reiterated its dedication to achieving its goals for the second half of 2024. The company plans to focus on maintaining customer service stability, expanding into international markets, and strengthening reinsurance activities.
“The strategy includes enhancing management models and leveraging information technology to optimize efficiency and maintain market leadership,” PVI Insurance emphasized.
The company’s robust performance and strategic initiatives underline its leadership and commitment to growth in Vietnam’s non-life insurance market.
