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M anh Hai
Fostering sustainable development in the pandemic efforts, BIC has successfully overcome the Covid-19 “storm” and achieved positive and sustainable results.
Profit before tax hit a record for the first time
Despite the Covid-19 pandemic, BIC has reached the milestone of VND400 billion (USD17.6 million) in pre-tax profit for the first time
I
n 2021, the Covid-19 pandemic with new variants, continued to develop complicatedly with long-lasting negative impacts on the economy in general and Vietnam’s non-life insurance market in particular. The fact that many provinces and cities had to implement social distancing has caused difficulties for production and business activities of enterprises and people’s income. Especially,
industries closely related to the nonlife insurance sector such as auto, service, tourism, and education… were significantly affected, causing negative impacts on the operations of non-life insurance companies. According to the General Statistics Office of Vietnam, the market’s nonlife insurance premiums in the first nine month of 2021 only grew by 5 percent over the same period last year. Experts forecast that the market’s 2021 growth rate is unlikely to exceed the 10 percent level compared to 2020. Given the difficulties caused by the pandemic, with the right orientations and effective solutions and relentless
22
B I D V r e vi e w
In 2021, the total insurance premiums of BIC alone were estimated at over VND2,800 billion (USD123.3 million), up more than 10 percent compared to the last year. Of which, direct premiums were estimated at VND2,600 billion (USD114.5 million), an increase of more than 12 percent compared to 2020. With the sustainable development orientation, BIC continued to achieve good results and impressive milestones in 2021. The total pre-tax profit in 2021 was estimated at over VND400 billion (USD17.6 million), increasing by more than 10 percent compared to the last year, fulfilling 140 percent of the year’s plan. In particular, in 2021, BIC continued to be profitable in insurance business. In the context of the complicated developments of the Covid-19 pandemic, BIC’s retail activities in 2021 achieved positive results. In particular, the bancassurance continued to record an impressive growth. The total revenues in 2021 of the channel were estimated at more than VND700 billion (USD30.8 million), growing by 35 percent from 2020. In the last 3 years, the channel’s revenue has seen an annual growth rate of around 70 percent. It can be said that BIDV and BIC are entering into the “golden era” in developing the bancassurance.
