PJICO first-half yield shows a firm on rise

With a semi-annual profit growth of 21 per cent, Petrolimex Insurance Corporation confidently welcomes foreign shareholders.

The PJICO-SFMI co-operation helps raise the two firms’ financial capacities

According to the latest news from Petrolimex Insurance Corporation (PJICO – PGI), in the first six months of 2017, the insurer recorded positive financial results, confirming PJICO’s solid standing.

Total insurance premiums hit VND1.21 trillion ($55 million), up 8 per cent year-on-year. Pre-tax profits reached VND97.2 billion ($4.4 million), increasing by 21 per cent when compared to the same period last year. This profit growth reflects PJICO’s strategy of focusing on quality, safety, and efficiency.

As of June 30, PJICO’s earnings per share (EPS) reached VND 1,120 (5 cents), while its return on equity (ROE) ratio sat at 9 per cent, which is the highest among non-life insurance companies in the market.

PJICO’s net technical reserves increased to nearly VND1.9 trillion ($86.4 million), a figure that is 2.56 times its chartered capital.

Last weekend, the private deal between PJICO and Samsung Fire and Marine Insurance Co., Ltd. (SFMI) won the title of “Archetypical Investment and Distribution Deal” from the 2017 M&A Vietnam Forum. In this deal, SFMI used roughly VND530 billion ($24 million) to purchase 17.74 million shares, equivalent to 20 per cent of PJICO’s chartered capital, a move which was approved by the State Securities Commission.

Since the domestic financial-insurance market still struggles to attract capital from big foreign enterprises, SFMI’s willingness to pay VND30,000 ($1.36) per share for 20 per cent of PJICO’s charter capital demonstrates the attractiveness of the Vietnamese insurance industry and PJICO in particular.

SFMI is Korea’s leading insurance company with more than 60 years of non-life insurance experience. According to the latest rankings from A.M Best Credit Ratings, SFMI’s financial capacity was rated A++ and its credit rating was AA+.

According to experts, the co-operation between the two leading insurance companies not only helps to strengthen the financial capacity and liquidity ratio of both firms, but it also increases their ability to help customers.

A PJICO representative said that the positive business outcome achieved in the first six months of 2017 will greatly help the company reach its 2017 targets.

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