Vietnam’s Insurance Market Attracts Investor Interest with Strategic Capital Increases
HÀ NỘI – Vietnam’s insurance industry is currently witnessing a surge in strategic capital expansion, a trend that is both reinforcing investor confidence and spurring renewed interest in insurance stocks.
Major players within the sector are actively raising funds to fortify their financial foundations, indicating a shift towards long-term growth and market resilience.
Key Capital Expansion Initiatives
Post and Telecommunication Insurance Corporation (PTI) recently issued 40.2 million shares, which boosted its charter capital to over VNĐ1.2 trillion (approximately $47 million USD). The company stated this will strengthen its ability to broaden business operations, improve risk management capabilities, and enhance financial security for its policyholders.
A customer at a Military Insurance Company (MIC) transaction office.
Military Insurance Company (MIC) has initiated a public offering aimed at raising additional capital. This offering is scheduled for the initial months of 2025. MIC finalized its shareholder list on December 10, 2024, for the public offering, issuing 25.9 million MIG shares at VNĐ10,000 per share. The offering ratio allows shareholders to purchase 15 new shares for every 100 held. Additionally, MIC intends to issue 2.86 million shares to its employees, with payments due between February 20 and March 5, 2025. With the 25.9 million shares already issued, the completion of the employee share plan would raise MIC’s charter capital from nearly VNĐ1.73 trillion to over VNĐ2 trillion.
OPES Insurance has also received approval to increase its capital, moving from VNĐ1.26 trillion to VNĐ1.9 trillion. This influx of new funds is expected to enable OPES to broaden its digital insurance services, utilizing technology to attract younger, tech-savvy policyholders.
PVI Insurance successfully raised its capital twice within 2024, increasing its charter capital to VNĐ3.9 trillion within a span of five months. These continuous increases are essential for PVI Insurance, allowing it to strengthen its financial capacity and boost its competitiveness in the market. In 2024 alone, the Ministry of Finance granted in-principle approval to three non-life insurance companies to increase their capital.
Nine non-life insurance companies applied for similar increases and received adjustment licenses from the Ministry, resulting in a total approved capital increase of over VNĐ3.96 trillion.
Recent Strategic Developments and Rebranding Efforts
Another significant development has been Aviation Insurance (VNI)’s decision to rebrand as DBV Insurance. DBV, backed by DBI Insurance Group (which holds a 75% stake and ranks among the top two insurance groups in South Korea), plans to leverage its advantages to foster business growth. DBV and its strategic shareholder, DBI, are expected to unveil breakthrough business development strategies at an upcoming shareholders’ meeting. It is anticipated that DBV will present plans to increase its charter capital as part of its rebranding strategy and nationwide expansion. This expansion will include transitioning some units from Sài Gòn – Hà Nội Insurance, also 75% owned by DBI.
DBI’s significant presence in the Vietnamese market extends beyond DBV and BSH, as it also holds a 37% stake in PTI. This situation, unprecedented in the Vietnamese insurance market, involves a foreign company holding substantial shares in three of the nation’s top ten non-life insurance firms. Furthermore, any moves within this group garner significant market attention.
AXA Group, a French multinational insurance corporation and major shareholder in Bảo Minh Insurance, recently met with the State Capital Investment Corporation (SCIC). The discussions included a comprehensive strategy for international growth, particularly plans for Southeast Asian expansion, with a focus on Việt Nam. SCIC and AXA have reached a consensus on the future direction of Bảo Minh, focusing on improvements in financial resources, IT systems, and training initiatives for the staff.
At the end of 2024, Bảo Minh’s shareholder structure included SCIC (50.7%), AXA (16.65%), and Firstland (5.65%). On February 28, Bảo Minh received notice from Firstland about its reduction in stake to 4.9%, no longer qualifying as a major shareholder.
Bảo Minh launched a new initiative as the first Vietnamese insurance company to offer film and event insurance products, in partnership with Circles Group. “The collaboration with Bảo Minh to introduce film and event insurance to Việt Nam is a crucial step in their regional expansion strategy,” said Kenneth Tan, APAC Development Director of Circles Group.
