BIDV Insurance to list in third quarter

BIDV Insurance Company plans an initial public offering in the third quarter of this year, company general director Pham Quang Tung said yesterday.

“We have prepared the listing procedures but are waiting for a final decision from our parent BIDV at the end of this month,” Tung said, revealing that the company would offer 25 per cent of its charter capital.

Currently, the company had VND543 billion (US$28.6 million) in charter capital.

The IPO will help BIDV Insurance comply with the Corporate Law which regulates that State-owned company must restructure to a limited liability or joint stock company before July 1. BIDV Insurance Company is an affiliate of the Bank for Investment and Development of Viet Nam, a state-owned commercial bank.

It also selected Saigon Securities Inc as a consultant for the offering, instead of BIDV Securities – another affiliate of BIDV – aiming to provide investors with transparency while going public, Tung said.

The company would list shares on official bourses in the first quarter of next year, as well as look for a strategic partner.

“We expect to have a leading life insurer as a strategic partner who can help us develop more products and services to our customers, as well as improve our ability in risk management and support our business expansion overseas,” Tung said.

In the first five months, BIDV Insurance Company achieved VND29.4 billion ($1.5 million) in after-tax profit and VND3.7 trillion ($194.7 million) of total asset. Meanwhile, the company’s premium was VND222.2 billion ($11.6 million), up 14 per cent over the corresponding period last year, of which premium from life insurance provision accounted for 70.3 per cent.

The company has targeted a growth of 35 per cent in premium and a profit of VND35 billion ($1.8 million) this year. Over the next five years, it will focus on overseas investment. — VNS

Tags: BIDV Insurance Company, Vietnam insurance, Vietnam insurance industry, Vietnam insurance market