Financial investments account for 74 pct of BIC’s profit

Of the total 36.298 billion dong profit before tax of BIDV Insurance Company (BIC) in the first six months, profit from financial investments alone was 27.046 billion dong, accounting for 74.5 percent.

BIC has recently announced the business results of the first six months of 2010.

According to the announcement, upto 30 June 2010, total assets of the company reached 3270.071 billion dong, up by 175 percent over the same period of 2009, and up by 80 percent compared to early 2010. Owners’ equity of BIC reached 548.621 billion dong, up by 18 percent over the same period of 2009. Total professional reserve funds reached 207.671 billion dong, up by 40 percent over the same period of 2009 and up by 17 percent compared to early 2010.

The total turnover of the company in the first six months was 346.146 billion dong, up by 62 percent over the same period of 2009; of that insurance premium revenues reached 238.512 billion dong, up by 69 percent over the same period of 2009.

For efficiency ratios, the total profit before tax of BIC reached 36.298 billion dong, up by 81 percent over the same period of 2009. Of that, profit from insurance business reached 8.889 billion dong and from financial investments reached 27.046 billion dong.

In the first six months, revenues from Bancassurance of BIC reached nearly 30 billion dong, accounting for 14 percent of total turnover (including services that commercial banks are insurance agents only).
The company is currently providing about 10 insurance products through BIDV and other connected banks such as SeaBank, North Asia Bank, Orient Commercial Bank, VRB Moscow Bank and Techcombank, etc.

BIC continued to expand its business network in the first six months, with the establishment of 12 regional offices in major provinces and cities, bringing the total regional offices of BIC to 50, additional to the 19 branches that have already been in stable operations.

According to BIC, the above-mentioned results have created a favourable condition for the company to carry out its plan for Initial Public Offering (IPO) in this third quarter, and prepare for the transformation into joint stock company in the beginning of the forth quarter and be officially listed in early 2011.

TBKTVN

Tags: Bidv Insurance, Vietnam finance, Vietnam financial