Revealing foreign insurance companies net buying over 1,600 billion VND

The first trading session had positive developments when strong cash flow helped VN-Index end the session up 15.27 points, equivalent to 1.26% to 1,224.97 points.

Market liquidity increased dramatically by 45% to VND29,129 billion, of which the matched value on the HoSE floor reached VND24,754 billion, up 35%.

Foreign investors also turned to net buying with a value of 137.78 billion VND today, of which this group disbursed 1,863 billion VND and sold 1,725 billion VND.

Notably, foreign investors net bought VND 1,628 billion in BHI code of Saigon - Hanoi Insurance Corporation.

Specifically, in today's session, BHI code matched the highest order in history with 75 million shares. Along with liquidity, BHI stock price also increased by 14.9% to 23,900 VND/share.

Previously, on June 14, 2023, BHI's group of shareholders signed a contract to transfer 75% of shares to DB Insurance.

Accordingly, a group of 21 shareholders will transfer 75 million shares to DB Insurance without a public tender offer. The group of transferring shareholders includes two major shareholders, Saigon - Hanoi Securities Corporation (HNX: SHS) and International Financial Investment and Consulting Corporation, along with 19 other individuals. Thus, BHI will become a subsidiary of DB Insurance.

Currently, BHI has 3 major shareholders: Vegetables, Fruits and Agricultural Products Joint Stock Company (OTC: Vegetexco) holding 10.1% of charter capital, equivalent to 10.1 million shares; Saigon - Hanoi Securities Joint Stock Company holding 9.98% of charter capital, equivalent to 9.98 million shares and International Financial Investment and Consulting Joint Stock Company holding 9.83% of charter capital, equivalent to 9.83 million shares.

BHI is a business belonging to the T&T Group ecosystem and is a partner of big names in the world insurance industry such as Swiss Re, Munich Re, CCR, Korean Re, Trans Re, Catlin...

On July 21, 2023, BHI code traded its first session on UPCoM, with the reference price of the first session on UPCoM at a market price of VND 12,000/share. Thus, the current price of this code has nearly doubled after 7 months of listing.

Regarding BHI's business situation, in 2023, the company earned VND29 billion in profit after tax, down 10% compared to the previous year. Of which, the company's gross loss from insurance business was more than VND10 billion and financial profit decreased by 28% to nearly VND191 billion.

BHI's insurance operations suffered losses due to a decrease in net insurance revenue, which was not enough to cover claims and other expenses. In addition, financial operating profits decreased, mainly due to a decrease of more than 75% in profits from securities trading compared to the previous year, to more than VND62 billion.

As of December 31, 2023, BHI's total assets reached more than VND 4,424 billion, an increase of 21% compared to the beginning of the year. Of which, assets are mainly in financial investments with long-term deposits shifting to short-term deposits, causing short-term financial investments to increase 2.7 times at the beginning of the year to more than VND 1,940 billion, while long-term financial investments decreased by 52% to more than VND 571 billion.

Payables increased by 30% compared to the beginning of the year, to over VND3,195 billion. The item that increased payables was mainly due to short-term unrealized revenue increasing 6.3 times, to over VND292 billion, and short-term business provisions increasing by 10% to over VND2,199 billion.

DB Insurance (DBI) is a non-life insurance company established in 1962, headquartered in Seoul, South Korea. DB Insurance belongs to the DB financial ecosystem, DB Group.

In 2015, DBI marked its entry into the Vietnamese insurance market by investing in an insurance company in Vietnam. In February 2023, Vietnam Aviation Insurance Corporation (VNI) also announced that DBI would receive the transfer of 75% of VNI's shares after receiving approval from the Ministry of Finance and completing procedures in accordance with the law.

Currently, DB Insurance is the second largest non-life insurance company in Korea. In 2022, DB Insurance's total assets were at 48.93 billion USD, and its equity was at 5.22 billion USD .

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