Bao Viet (also Bao Viet Holdings vi, Tập đoàn Tài chính-Bảo hiểm Bảo Việt) is the largest

Vietnam Vietnam or Viet Nam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,., group="n" is a country in Southeast Asia, at the eastern edge of mainland Southeast Asia, with an area of and population of 96 million, making i ...

ese insurance company and Vietnam's seventh largest listed company by market capitalisation. It is state-owned and has a strategic partnership with

HSBC HSBC Holdings plc is a British multinational universal bank and financial services holding company. It is the largest bank in Europe by total assets ahead of BNP Paribas, with US$2.953 trillion as of December 2021. In 2021, HSBC had $10.8 tri ...

, which also holds 18% of Bao Viet's shares. HSBC is, however, soon to be replaced by

Sumitomo Life is a mutual life insurance company in Japan, founded in 1907 and headquartered in Osaka. In 2005, the company announced a joint venture with the People's Insurance Company of China. The new company was named PICC Life Insurance, which sells in ...

. Besides various insurance products, Bao Viet has diversified into stock market trading, fond management and real estate. It also has subsidiaries in banking, hotels and construction. Bao Viet has been losing market shares in recent years and has also been making losses in the insurance sector since 2009.

History

Bao Viet was set up following Government Decision 179/CP from 17 Dec 1964. It started operating on 15 Jan 1965, providing traditional insurance products in two branches in

Hanoi Hanoi or Ha Noi ( or ; vi, Hà Nội ) is the capital and second-largest city of Vietnam. It covers an area of . It consists of 12 urban districts, one district-leveled town and 17 rural districts. Located within the Red River Delta, Hanoi is ...

and

Haiphong Haiphong ( vi, Hải Phòng, ), or Hải Phòng, is a major industrial city and the third-largest in Vietnam. Hai Phong is also the center of technology, economy, culture, medicine, education, science and trade in the Red River delta. Haiphong wa ...

with a total staff of 20 people and a capital stock of 10 million VND. It was transformed into a corporation (''Tổng Công ty'') in 1989. Subsidiary BAVINA was set up in England in 1992. By 1996, it was among the 25 largest state companies in Vietnam and was ranked as a special class state company. The government decided to turn Bao Viet into a major finance and insurance group in 2003, enabling it to offer a broad range of financial products other than insurance – a decision that was not implemented until 2007. In 2007 the company established partnerships with national groups such as

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and international companies, namely

. HSBC acquired a stake of 10% and options for another 15% in 2007 and bought another 8% in 2009. From 2007 to 2008 Bao Viet was also restructured, including registration as a joint-stock company and the setting up of several wholly owned subsidiaries in the insurance sector. Bao Viet stocks have been traded in

Ho Chi Minh city Stock Exchange Ho Chi Minh Stock Exchange (HOSE), formerly known as HCM Securities Trading Center, is a stock exchange in Ho Chi Minh City, Vietnam. It was established in 1998 under Decision No. 127/1998/QD-TTg of the Prime Minister of Vietnam. HCM Securities T ...

since 2009.

Market shares and competitors

Bao Viet had a share of 23.7% in the insurance market (excluding life insurance) in 2011. This has been gradually decreasing from 38.4% in 2005. Bao Viet is still the market leader, but PetroVietnam Insurance is very close behind. Smaller competitors with just over 10% market share include Bao Minh and

PJICO Petrolimex Joint Stock Insurance Company (PJICO) is state-owned insurance company in Vietnam, involved in the non-life insurance market. The company's stock is currently not listed on the Ho Chi Minh City Securities Trading Center and it is majorit ...

. In general, the insurance market has become more competitive, with companies other than the big four doubling their combined market share to over 30% between 2005 and 2011. In the Vietnamese life insurance market Bao Viet is the second largest provider after Prudential with a market share of 28% in 2011, down from 38% in 2005. Other competitors include

Manulife Manulife Financial Corporation (also known as Financière Manuvie in Quebec) is a Canadian multinational insurance company and financial services provider headquartered in Toronto, Ontario. The company operates in Canada and Asia as "Manulife" an ...

Dai-ichi Life , or Dai-ichi Life for short, is the third-largest life insurer in Japan by revenue, behind Japan Post Insurance and Nippon Life. Founded on September 15, 1902, Dai-Ichi was one of the oldest mutual insurance companies in Japan until a motion to d ...

, and

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, with market shares of up to around 10% each. According to the Ministry of Finance, Bao Viet was the largest life insurer in 2012 with market share of 23.9%, slightly ahead of Prudential with 22.6%.

Ownership

Bao Viet is a state-owned company. The

Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance. Lists of current ministries of finance Named "Ministry" * Ministry of Finance (Afghanistan) * Ministry of Finance and Eco ...

holds 71% of the shares and the

State Capital Investment Corporation The State Capital Investment Corporation (SCIC, ) is a state-owned holding company considered a National Wealth Fund of Vietnam. It was established on 20 June 2005 under the mandate of Prime Minister Phan Văn Khải as part of a range of reform ...

(SCIC) another 3%.

currently owns 18% of the shares, all of which are soon going to be transferred to

Companies and products

Bao Viet Insurance Ltd. (100% owned by BVH) is the company originally set up under the name Bao Viet in 1965. It offers a variety of insurance products to personal customers (health, travel, motor vehicle, accident insurance) and corporate customers (cargo, aviation, oil and gas, motor vehicle, liability insurance etc.). :HDBank iCare is a health insurance system offered by HDBank in cooperation with Bao Viet Insurance. Bao Viet Life (100%) was separated from Bao Viet Insurance in 2004. Bao Viet has been offering life insurances since 1996. 2012 revenues were 7,090bn VND ($340m) and profits 688bn ($33m). According to the Ministry of Finance, it is the leading life insurer in Vietnam with a market share of 23.9% in 2012. Bao Viet Fund (BVF) (100%) is the successor of the group's Investment Center. It was set up with a legal capital of 50 billion VND and is active in portfolio management and portfolio management consulting. Bao Viet Securities (BVS) (60% owned by BVH) is the group's second company to be listed on a stock exchange. While Bao Viet Holdings is listed in Ho Chi Minh City, BVS is listed in the younger and smaller

Hanoi Securities Trading Center Hanoi Stock Exchange (HNX), formerly the Hanoi Securities Trading Center (Hanoi STC) until 2009, is located in Hanoi, Vietnam, and was launched in March 2005. It handles auctions and trading of stocks and bonds. It was the second securities tradin ...

. It offers securities brokerage services. The company's chairman Nguyen Thi Phuc Lam is also director of Bao Viet Holdings. Bao Viet Bank (52% owned by BVH) was set up in December 2009 in cooperation with

Vinamilk Vinamilk, formally the Vietnam Dairy Products Joint Stock Company () is the largest dairy company in Vietnam. Based on the UNDP 2007 Top 200 largest firms in Vietnam report, it was also the 15th largest company in Vietnam and formerly the most va ...

, CMC Technology Corporation and HiPT Technology Corporation. This was an expression of Bao Viet's new business model based on the three pillars of insurance, securities and banking. Besides basic banking services, the bank is also involved in insurance sales and wealth management advise. Bao Viet Investment (55% owned by BVH) was set up in January 2009 and specialised in construction investment. Activities include real estate investment, consulting and trading.

Financial Information

References

{{Reflist Financial services companies established in 1964 Companies listed on the Ho Chi Minh City Stock Exchange Financial services companies of Vietnam Insurance companies of Vietnam Government-owned insurance companies Companies based in Hanoi Vietnamese brands Sumitomo Life