The Military Insurance Company (MIC), a member company of the Military Commercial Joint Stock Bank (MB), has just held its annual shareholders’ meeting in 2017. Under the theme “Observing law, rapid growth, quality and efficiency,” the shareholders elected a five-member board of directors and a three-member controlling board for the 2017-2022 term.
At MIC's annual shareholders' meeting in 2017
The meeting was participated by nearly 50 shareholders with 80 million shares - 100% of the shares. Colonel Nguyen Quang Hien, Director General of MIC, reported that last year the Company earned VND 2,000 billion, or 102% of the set plan, up by 19.7%, with the compensation rate under 32%. The reserve fund reached nearly VND 1,000 billion, up by 67.6%, while the profit was VND 88 billion, or 122% of the set plan, an increase of 75.6%. The dividend rate is expected to reach 8%.
The revenue structure of MIC has been shifting in a sustainable manner, gradually decreasing the rate of vehicle insurance while increasing the rate of insurance for technical and maritime assets, pushing up the insurance via Bancassurance (sales of insurance products via banks) and registration channels, enjoying high revenue rate. MIC has completed the target to increase its charter capital to VND 800 billion, increasing its financial capacity and competitiveness. The the number of its member companies mounted to 54 with nearly 400 transaction offices and more than 2,500 insurance agents in almost all provinces and cities nationwide.
Growing investment activities have brought MIC profits. Profitable assets reached nearly VND1.400 billion, up by 40% while revenue from financial investment stood at VND 100 billion, up by 39.3%. MIC has also finalized its 2015-2020 strategy with vision towards 2025, resting on three pillars, four platforms and its management and business operation based on Slovency 1 and 2 international standards. Besides, its organizational model has promoted the efficiency of its operation and activities.
MIC has held various social activities such as donating VN 600 million to flood-hit people in the Central region; presenting 30 bicycles to needy students in Chu Dang Ya district of Gia Lai province; sponsoring the program “Border guard spring - warming border villagers’ hearts” with VND 100 million; presenting 102 gifts to policy beneficiaries in Phu Tho province, and more.
For its achievements, MIC was awarded with the excellent emulation flag of the Chairman of the Hanoi People’s Committee and voted by clients as one of the top 10 prestigious insurance companies in Vietnam and also one of the top six best quality companies in Vietnam’s insurance community.
Colonel Uong Dong Hung, Deputy Director General of MB, Chairman of MIC’s Board of Directors, stressed that this year, MIC is determined to rake in VND 2,150 billion with profit approximately of VND 150 billion; revenue from Bancassurance is expected to double. The Company’s information technology will also see breakthroughs via the application of electronic insurance; e-invoices; online sales, verification and compensation; helping increase clients’ satisfaction, etc.
Senior Lieutenant General Le Huu Duc, Chairman of MB’s Board of Directors, emphasized that competitive insurance has been increasingly developing. To fulfill the set targets, MIC needs to closely grasp its motto of development: Rapid, different, and sustainable. Therefore, the strategy of MIC in the 2017-2022 period approved by shareholders should be incorporated in the common strategy of MB. MIC has been committed to developing itself into a convenient retail insurance company in top five non-life insurance companies in 2020 and in top three in 2025. To this end, MIC will have to increase its charter capital from VND 800 billion to VND 2,000 billion and get ready to be listed in securities markets any time from 2018-2020. To realize this target, MIC has to improve the capacity of its management system, attract and train high-quality human resources while boosting the application of information technology, considering it an urgent task and a must in ensuring the company’s operation.
MIC will strengthen its risk management capacity by completing procedures, regulations especially risk management framework; successfully implementing programs under the Solvency 2 standard; strengthening inspection, control and prevention of insurance fraud; ensuring the company’s safe and transparent operation with strict observation of law.
Translated by Huu Duong