(TBTCO) – Saigon – Hanoi Insurance Corporation (BSH) has officially announced its foreign strategic shareholder, DB Insurance (Korea). DB Insurance’s participation is expected to make BSH the leading non-life insurance company in the Vietnamese insurance market. This is an important milestone for BSH in its new development phase with a higher position and more new opportunities.
Extending strength, reaching out globally
On February 27, 2024, the “Foreign Strategic Shareholder Announcement Ceremony” of Saigon – Hanoi Insurance Corporation (BSH) officially took place in Hanoi. At the announcement ceremony, DB Insurance (DBI; Korea) officially became BSH's foreign strategic partner.
Mr. Do Quang Vinh - Chairman of BSH Board of Directors (left) and Mr. Jeong Jong Pyo - General Director of DBI performed the flag planting ceremony.
officially marks the merger between BSH & DBI. Photo: BSH.
According to information from BSH, after receiving the written approval in principle from the management agency at the end of December 2023, on February 19, 2024, the official transfer transaction of 75 million BSH shares (stock code: BHI) of 2 institutional shareholders and 19 individual shareholders to DBI took place. Accordingly, DBI officially became a foreign strategic shareholder holding 75% of charter capital; the remaining shares are owned by the Vegetable and Agricultural Products Corporation (Vegetexco: 10.1%), Saigon - Hanoi Commercial Joint Stock Bank ( SHB : 4.29%) and other shareholders.
After more than 15 years of development, BSH Insurance is increasingly affirming its position in the non-life insurance market in Vietnam, providing many practical and useful insurance products to customers in almost all insurance sectors. BSH is among the fastest growing non-life insurance companies in the Vietnamese insurance market with an average growth rate of 39.2% / year in the past 5 years, ranking 25/500 fastest growing enterprises in Vietnam ( VNR statistics). Not only growing rapidly, BSH also has a large network (52 member units, with more than 60 sales offices nationwide), a strong team (1,600 highly qualified and experienced staff), a diverse product ecosystem, and especially has been and is strongly transforming digitally to provide more perfect services for the increasingly diverse needs of customers.
By the end of 2023, BSH Insurance recorded original insurance premium revenue of VND 2,949 billion, ranking 9th out of 32 largest insurance companies in the market in terms of revenue scale; ranking 4th in the market in terms of motor vehicle business revenue scale. BSH's equity ranked 12th and its business reserve fund ranked 9th; total equity and business reserve fund ranked 10th in the whole market (2021). Regarding investment activities, the estimated short-term profitability ratio in 2023 is 22%, higher than the market average (over 11%).
The strategic cooperation with DBI is expected to create opportunities for BSH to further strengthen and expand strongly into the regional and global insurance market. DBI is known as a global insurance company, belonging to DB Group (Korea) with a network of operations in many countries such as the United States, China and Vietnam. DBI has 60 years of experience operating in the non-life insurance market and is currently the second largest in the Korean market. Premium revenue in 2023 will reach 13.2 billion USD and profit will reach 1.2 billion USD, while DBI is rated A+ by AMBest (a global credit rating agency).
Join forces to create new miracles
Over the past 30 years of formation and development, the Vietnamese insurance market has made remarkable progress: The legal framework for insurance business has been continuously improved; the market has the participation of many life and non-life insurance enterprises and insurance brokers; insurance products have become more diverse; the demand for insurance services of people, organizations and businesses is increasing...
During the period from 2013 to 2022, total market insurance premium revenue grew by an average of 18.3%, of which non-life market revenue increased by an average of 11.6%; life market revenue increased by an average of 23.3%.
Many international financial institutions have a positive assessment of Vietnam's economic growth potential - this is an important foundation for the insurance market to develop in a country with a large population. More specifically, under the attention and direction of the Government, the Ministry of Finance and management levels, the Vietnamese insurance market is expected to develop more strongly in a more quality, healthy and sustainable direction. In comparison with the region and the world, the scale of the Vietnamese insurance market is still quite modest, while the potential of the market is still large - this is room for the market to develop more positively, continuing to open up potential in the coming time.
Therefore, with DBI as a strategic shareholder, it will become a lever to help BSH expand the market; at the same time, promote technology development capacity and improve service quality.
Accordingly, in the coming time, DBI will focus on developing 3 pillars to increase the overall strength for BSH to reach new heights. Specifically, it will focus on improving operational capacity in core business areas, especially applying digital innovation to develop BSH into a leading digital insurance company. At the same time, in order to pursue a business strategy that puts customer value first, DBI will support BSH to create an insurance company that is loved by customers by listening to customer opinions and promptly providing products and services that customers desire. Together, DBI and BSH will join hands to build a company that is loved by employees, workers and Vietnamese society.
Mr. Do Quang Vinh - Chairman of BSH Board of Directors spoke at the ceremony. Photo: BSH.
Speaking at the ceremony, Mr. Do Quang Vinh - Chairman of the Board of Directors of BSH said that the event of welcoming strategic partner DB Insurance is an important milestone for BSH in the development stage with a higher position and believes that this cooperation will bring many new opportunities for BSH. DBI's strong financial potential, methodical business strategy and global network of operations will become a lever to help BSH expand the market, while promoting technology development capacity and improving service quality. Together with DBI, BSH hopes to create new miracles, shaping the future of sustainable development of the company.
Mr. Jeong Jong Pyo – General Director of DBI spoke at the ceremony. Photo: BSH.
Mr. Jeong Jong Pyo - General Director of DB Insurance also said that DBI has the responsibility, together with other shareholders, the board of directors and all employees, to build and develop BSH to become an insurance company with the strongest operating capacity in Vietnam and the Indochina peninsula.
“To achieve this goal, DB Insurance is committed to becoming a reliable companion in BSH's vision and future goals” – DB Insurance's General Director emphasized./.
| According to statistics, as of July 2023, Korea is the largest investment partner in Vietnam with a total investment capital of 83 billion USD. In 2023 alone, the total new investment capital from Korea to Vietnam is 2.3 billion USD, ranking 2nd among countries and territories investing in Vietnam. The cooperation between BSH and DBI not only brings benefits to the two businesses but also contributes to promoting investment, increasing the spirit of solidarity and friendship between the two countries of Vietnam and Korea. |
According to Financial Times
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