MIC still sets a positive 2023 business target with a 75% increase in profit

DNHN - Even though the non-life insurance market still faces numerous obstacles, MIC has set a profit growth target of 75% over the previous year for 2023.

The 2023 Annual General Meeting of Shareholders of Military Insurance Corporation (MIC, MIG/HoSE) was held on April 20, 2023, and approved the business results for 2022 and the development orientation for 2023.

At the meeting, Mr. Uong Dong Hung, Chairman of MIC's Board of Directors, stated, "MIC aims to enter the top four market shares in the non-life insurance industry by 2023. To achieve this objective, MIC will intensify the development of digital platforms, digitize process stages, and develop new technology systems. According to the established road map, future long-term strategies will help protect the interests of customers, shareholders, and business partners.

Based on the aforementioned strategic orientations, MIC aims to rise to the top three in terms of market share in Vietnam's non-life insurance industry by 2026 and to lead its digital transformation.

According to MIC, the Ministry of Finance anticipates that the average growth rate of total assets, total investment, and total revenue on the insurance market will be approximately 15% in 2023, based on the results achieved in 2022. Nonetheless, the market faces obstacles such as The increase in the rate of claims (due to the return of socio-economic activities to normal after the epidemic), while the demand for new insurance slows (due to more difficult economic forecasts) and investment activity decreases (due to a sharp drop in the stock market...).

Even though the non-life insurance market still faces numerous obstacles, MIC has set a positive business objective for 2023, including a minimum 17% increase in insurance revenue, 75% growth in profit, a combined expense ratio of 95%, and a minimum dividend rate of 10%.

Regarding the business results of the first quarter of 2023, MIC reported that the results were still positive, with original insurance revenue reaching VND 1,217 billion and net insurance business revenue reaching VND 937 billion, a 14% increase over the same period in the previous year. The profit before taxes remained unchanged at 86 billion dongs.

The company's financial statements for the third quarter of 2022 revealed a profit before taxes of VND 200 billion for the entire year, a decrease of 29% compared to the same period the previous year. MIC's profit after taxes was VND 159 billion, a decrease of 29% compared to 2021.

Consequently, insurance activities contributed to MIC's 579 billion dongs net profit, an increase of 17% over the same period, with human insurance, property insurance, and auto insurance driving the increase.

MIC has paid out more than 1,360 billion VND in insurance claims and collected nearly 508 billion VND in reinsurance claims in 2022.

MIC's net profit from financial investment activities for the period was 161 billion dong, a decrease of 30% compared to the same period last year, primarily due to the sharp decline in interest on deposits and investment trusts. Meanwhile, bond investment profits increased by 14% to more than 57 billion Vietnamese dongs. MIC's total assets reached VND8,545 billion as of December 31, up 30.1% from the beginning of the year. Additionally, the shift from short-term to long-term investments continues.

PV (t/h)