This year, among leading insurance companies, some are satisfied about foreign shareholders while some others frankly said “not yet”.
Currently, the leading non-life insurers/reinsurers in the market have foreign strategic shareholders, through direct ownership of shares such as PJICO, PTI, Bao Minh, Vinare, or indirect ownership via parent company such as PVI, Bao Viet.
Talking to reporters of the local Newswire Dau Tu Chung Khoan on the side-lines of the recent annual general meeting, Nguyen Anh Tuan, Chair of PVI said basically, PVI recorded contributions of foreign strategic shareholders, i.e. HDI Global SE (the largest shareholder with 36.5 percent stake).
“Foreign shareholders have provided consultancy and strategic consultancy in management and investment to the company”, said Tuan.
According to HDI, previously, the company purchased 25 percent stake of PVI, and then acquired Funderburk Lighthouse Limited, the shareholder who owned 11.5 percent stake of PVI. Accordingly, HDI is directly and indirectly holding 47.31 percent stake of PVI, even more than 50 percent, including the indirect ownership of shares through some other organisations and individuals.
Dao Nam Hai, CEO of Petrolimex Insurance Joint Stock Company (PJICO) said the deal to sell 20 percent stake to foreign shareholder i.e. Samsung Fire & Marine Insurance Co., Ltd (SFMI) officially completed last August, so it is impossible to know specific contribution to revenue of this shareholder. However, the two sides worked closely together and divided into each group to carry out the work, established coordination board and steering board to carry out support with SFMI under the cooperation agreement signed in the segments of business, corporate management, information technology, education, etc.
In 2018, PJICO will make the most of support commitments of the strategic shareholder SFMI, i.e. development of new insurance product Mobile Phone Insurance; implementation of agreements on co-insurance, re-insurance; development of retail channels from South Korean people in Vietnam; acceleration of online insurance sale channel, bancassurance, etc.
In the opposite direction, shareholders at PVI and Vietnam Reinsurance Joint Stock Corporation (Vinare) highly appreciate the company that they are holding shares.
“With the purchase of 25 percent stake (seven years ago), we have accepted higher bid price than the market price because of having confidence in the growth of Vietnam as well as PVI. We purchased PVI’s future”, said Ulrich Heinz Wollschlager, HDI’s representative at PVI’s 2018 annual general meeting (AGM).
At the AGM of Vinare, in the context that the domestic and international insurance and re-insurance markets have a lot of difficulties, Swiss Re shareholder representative Deepak Mohan expressed the confidence that Vinare would continue developing and achieving new successes.
“Vinare has the right orientation i.e. to maintain business discipline, focus on improving business efficiency, building and completing internal regulations for future development. We trust in Vinare”, said Mohan.
Ulrich Heinz Wollschlager said when the room for foreign investors at PVI is maximally loosened; HDI will raise the ownership rate to dominating level. HDI will continue using PVI’s personnel capability and will not forget those who helped developing PVI’s future.
However, Chair of PVI frankly said that despite contribution, he has not satisfied with foreign shareholders after more than five years of cooperation.
“Not denying contributions of foreign strategic shareholders since its participation in PVI relating to financial support and strategic consultancy, etc., but we expect much more. Both I and CEO of PVI expect foreign shareholder to directly involve in management along with other direct activities”, said Tuan.
Meanwhile, talking with reporters of Dau Tu Chung Khoan, leaders of some member companies of BIDV Insurance Corporation (BIC) and Global Insurance Company (GIC) said after having foreign shareholder, benefits have not been seen, but business operations face difficulties as foreign shareholder requires to tighten costs, and do not accept commissions, which is indispensible in insurance business.
