New vitality of BSH Insurance

(DTCK) Starting the new spring of 2024, Saigon - Hanoi Insurance Corporation (BSH) welcomed foreign strategic shareholder DB Insurance (DBI). This important milestone took place at JW Marriott Hotel, Hanoi on the afternoon of February 27.

Mr. Do Quang Vinh - Chairman of BSH Board of Directors and Mr. Jeong Jong Pyo - General Director of DBI performed the flag planting ceremony.

officially marks the merger between BSH & DBI (Photo: BSH).

Welcoming foreign capital flows in 2024

DB Insurance has officially become a foreign strategic shareholder, holding 75% of charter capital (equivalent to 75 million BSH shares (UPCoM code: BHI). 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. Thus, BSH is one of the first non-life insurance companies to welcome foreign capital in 2024.

DB Insurance (Korea) is not a strange name, not a new capital flow into the Vietnamese insurance market, previously poured into non-life insurance companies (DNBH) in Vietnam.

DB Insurance is known as a global insurance company, part of DB Group (Korea) with a network of operations in many countries such as the United States, China and Vietnam. With 60 years of experience, DBI operates in the non-life insurance market and is currently the second largest in the Korean market. Premium revenue in 2023 reached 13.2 billion USD and profit reached 1.2 billion USD, at the same time DB Insurance is rated A+ by AMBest, a global credit rating agency.

New vitality of BSH

The continued capital injection into non-life insurance companies continues to demonstrate the attractiveness of BSH in particular and the non-life insurance market in general, despite the challenges that insurance companies have faced over the past time.

Despite difficulties, BSH Insurance is still among the fastest growing companies in the Vietnamese insurance market with an average growth rate of 39.2% per year in the past 5 years, ranking 25/500 fastest growing enterprises in Vietnam ( VNR statistics).

By the end of 2023, BSH will reach VND 2,949 billion in original insurance premium revenue, holding the Top 4 in market share of Motor Vehicle insurance exploitation and being in the Top 10 largest non-life insurance companies in Vietnam in terms of revenue scale.

For many years, the Vietnamese insurance market management agency has continuously encouraged insurance companies to seek foreign capital. Diversifying corporate ownership with the participation of foreign strategic shareholders as well as applying international standards in corporate governance and management not only enhances transparency but also effectively exploits investment capital flows, creating a breakthrough in revenue and profit.

The participation of foreign strategic shareholder DBI is expected to make BSH a leading non-life insurance company in the Vietnamese insurance market by combining DB Insurance's long-standing experience in the insurance business and advanced technology system into BSH's operations.

The three pillars focused on development include improving operational capabilities in core business areas, especially applying digital innovation to develop BSH into a leading digital insurance company; pursuing 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 customers' opinions, promptly providing products and services that customers want; the two sides 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, said that this is an important milestone for BSH in its development phase with a higher mindset and believes that this cooperation will bring many new opportunities for BSH.

“DB Insurance’s strong financial potential, methodical business strategy and global network of operations will become a lever to help BSH expand the market while promoting technological development capacity and improving service quality. Together with DB Insurance, BSH hopes to create new miracles, shaping the company’s sustainable development future,” said Mr. Vinh.

Mr. Do Quang Vinh - Chairman of BSH Board of Directors spoke at the ceremony (Photo: BSH).

It's too early to tell the outcome of this marriage, but the responsibility for a dynamic, truly transformative BSH is on the line.

According to Mr. Jeong Jong Pyo, General Director of DB Insurance, DBI is responsible for building and developing BSH together with other shareholders, the Board of Directors and all employees to become the insurance company with the strongest operational capacity in Vietnam and the Indochina peninsula. To achieve this goal, DBI is committed to becoming a reliable companion in BSH's vision and future goals.

Mr. Jeong Jong Pyo - General Director of DBI spoke at the ceremony (Photo: BSH).

Not only DBI, major foreign shareholders of other insurance companies also re-emphasized their commitment to support and create all conditions for this insurer to achieve its goal of strong development.

According to investors, owning 75% of BHI's capital after buying up to 75 million BHI shares in the session of February 19 is also a historic transaction of BSH. In just 2 sessions (February 19 and 20), BHI shares recorded a ceiling price increase for 2 consecutive sessions, increasing by 24%, to VND 25,700/share at the end of the session on February 20.

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.

About DB Insurance Co., Ltd (DB Insurance – DBI)

DB Insurance Co., Ltd (DBI) is a company belonging to the DB Group ecosystem of Korea. Established in 1962, with more than 60 years of experience in insurance exploitation and business, DBI is currently known as the 2nd largest non-life insurance company in Korea with a global network of operations. By the end of 2023, DBI achieved revenue of 13.2 billion USD, pre-tax profit of 1.2 billion USD.

DBI achieved revenue of 13.2 billion USD, pre-tax profit of 1.2 billion USD. DB Insurance is rated A+ by AMBest and A by S&P credit rating agency.

According to Securities Investment Newspaper

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