On April 20, 2018 Petrolimex Joint Stock Insurance Company (Pjico, ticker symbol PGI) organised the 2018 Annual General Meeting of Shareholders. At the meeting, the shareholders unanimously passed the report on 2017 business results, 2018 business orientations, after-tax profit distribution plan, and increased dividends for shareholders among others.

Impressive profit growth of nearly 25%

Pjico Director General Dao Nam Hai addresses the meeting

Speaking at the meeting, Pjico Director General Dao Nam Hai said despite challenges facing the economy as well as the insurance market in 2017, the company accomplished all business targets. Of note, the pre-tax profit margin increased impressively with nearly 25 per cent, fulfilling 111.7 per cent of the year’s profit targets and reaching VND156.35 billion (US$6.8 million).

This is also the fifth consecutive year that Pjico has been consistent in its business orientation of sustainability, safety and efficiency. The business outcomes over the past five years continue to show the correctness of the orientation.

Chairman of Pjico Management Board Dinh Thai Huong speaks to the meeting

According to the Chairman of Pjico Board of Management Dinh Thai Huong, 2017 is also the fourth year that Pjico accomplished all planned targets set by the Annual General Meeting, including the 2017 dividend payout ratio of 12 per cent (an increase of 20 per cent compared to the minimum target set forth by the Annual General Meeting). This continues serving as a premise for the company to achieve steady progress in 2018 and the years to come.

Strategic foreign shareholder Samsung

The year 2017 also witnessed Pjico’s selection of the No. 1 strategic foreign shareholder in insurance – Samsung Fire & Marine Insurance Co., Ltd (SFMI) with a 20 per cent stake in Pjico. Shortly after SFMI became a shareholder, Pjico Board of Management established the Coordination Board and Steering Board to carry out support activities with SFMI under cooperation agreements signed with parties in the fields of business, corporate management, information technology, and training, and so on. Additionally, the appointment of a SFMI representative into the Board of Management would help improve Pjico’s management capability and competitiveness in the economic integration process. As of April 20, 2018, SFMI Head of Global Management, Global Management TeamKim Chang-soo officially became a member of Pjico Board of Management.

SFMI Head of Global Management, Global Management TeamKim Chang-soo becomes a Pjico Board of Management member on April 20, 2018

Hai said Pjico would bring into full play and take advantage of commitments by the strategic investor such as the implementation of co-insurance and reinsurance agreements; development of retail channels targeting the Koreans in Vietnam; working with SFMI to promote online selling of insurance, including through banks’ internet banking and mobile banking system.

Technology-based improved competitiveness

In 2018, Pjico continues to reach out for reasonable revenue growth, profit growth higher than revenue growth and continuous improvement of financial capability. Specifically, Pjico set target of original insurance premium revenue of VND2,625 billion ($115 million), an increase of about 5 per cent over the original insurance premium revenue in 2017; total pre-tax profit margin of VND171.353 billion ($7.5 million), and minimum dividend payout ratio of 12 per cent.

To that end, in 2018 Pjico will concentrate on four solutions of enhanced competitiveness in insurance business; effective reinsurance plan; selection of optimum investments; and improvement of human resources.

To enhance the competitiveness in the fourth industrial revolution, in the second quarter of 2018, Pjico will complete and put into full operation technological solutions such as the application of the Premia professional management software to all business modules, and integration of the software with accounting software; and software programmes assisting the management of human resources, salary payment, reinsurance, and hospital fee guarantee, among others and continuous upgrade of these programmes to meet the market’s demands and trends.

In addition, Pjico will utilise the strategic investor’s software applications to assist the corporate governance, human resources management, technical and professional works, and the application of QR code technology as well as smart mobile device-based payment into processes to simplify procedures, prevent profit seeking and improve values for customers.