Bao Viet Holdings insuring for the future

Bao Viet Holdings (BVH), Vietnam’s biggest financial-insurance group, posted a modest 9 percent year-on-year gain in consolidated pre-tax profit last week, aided by a strong jump in general insurance.

The state-owned firm said its consolidated pre-tax profit in the three months to March 31, this year rose 9 percent, or almost 28 billion dong ($1.35 million), to 345 billion dong ($16.67 million) as compared with 2010′s Q1.

That result was mainly driven by strong jump in general insurance business, which up some 52 percent to 107 billion dong ($5.17 million) from last year’s Q1. According to BVH, premium of general insurance in this quarter had been up nearly fifth year-on-year.

However, life insurance sharply reduced 15 percent to 130 billion dong ($6.28 million) in pre-tax profit from last year’s 149 billion dong ($7.19 million). This decline significantly dragged down the firm’s growth, despite the 21 percent jump in consolidated revenue to 3.35 trillion dong ($161.83 million).

Combined revenues from core insurance operations still rose 13 percent to 2.18 trillion dong ($105.31 million).

Profits from finance services advanced modestly 11 percent to 81 billion dong ($3.91 million), while banking services up 8 percent to 25 billion dong ($1.21 million).

“That result was satisfactory and inline with expectations,” said Hoang Viet Ha, spokesman for BVH. “We achieved double-digit revenue growth in our core insurance businesses and out banking operations continued to grow strongly.”

Bao Viet planned a modest pre-tax profit growth for this year of 15 percent, or 1.4 trillion dong ($67.63 million), early this year given the current turbulence in the financial markets. The Q1 results contributed to 24 percent of that annual target.

The net assets of the group were 11.58 trillion dong ($559.42 million), up 9 percent. The share hit the floor, or down 4.9 percent, on Ho Chi Minh Stock Exchange in Monday’s session to 74,000 dong ($3.57). – VIR

Tags: Bao Viet Holdings