Insurance companies said they have received thousands of claims for damages to homes, vehicles, production facilities and people after Typhoon No. 3 (Yagi) and quickly activated the damage assessment system and processed claims. The total amount of claims for losses reached nearly ten thousand billion VND.

In particular, PVI Corporation (HNX-PVI) announced that the total estimated loss claims due to storm Yagi as of September 23 was more than VND3,000 billion, an increase of about VND1,000 billion compared to the update on the morning of September 11.

As of September 23, PVI Insurance has recorded 751 losses in property, motor vehicle and personal insurance. PVI has begun to make provisional payments to customers who suffered property losses in the amount of VND15 billion. However, assessing the losses this time is not easy, especially in the non-life insurance sector, due to the terrible devastation caused by the storm.

On the stock market, PVI shares did not decrease much. This stock went from 47,000 VND on September 6 (before Typhoon Yagi hit Vietnam on September 7) to 45,000 VND/share as at present.

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Assessing damage caused by Typhoon Yagi. Photo: BVH

The reason why PVI shares did not decrease much is believed to be because German insurance giant HDI Global SE registered to buy an additional 2.95 million shares right after the storm (September 12) and made a transaction to buy more than 2.775 million shares (September 18).

If calculated based on the average trading price of PVI shares in the session of September 18, which was 45,000 VND, the German insurance company spent nearly 125 billion VND on the deal to increase ownership at PVI.

With this transaction, HDI Global SE increased its total shares held at PVI to more than 99.15 million units, equivalent to 42.33%.

In addition, related shareholder Funderburk Lighthouse Limited still holds more than 29.5 million shares, equivalent to 12.61%. In total, the German insurance giant group holds nearly 128.7 million PVI shares, equivalent to 54.94%. Previously, on September 9, HDI Global SE bought 161,600 PVI shares.

HDI Global SE is known as a company with 100% charter capital owned by Talanx Insurance Group of Germany. HDI Global SE currently holds a controlling stake in PVI Holdings - a company that holds 100% of PVI Insurance shares.

After about a week of sharp decline after Typhoon Yagi, insurance stocks have recovered, with a decrease of only about 3-7% compared to before the storm.

Before the storm, on September 6, BVH shares of Bao Viet Group were at VND44,800/share and by September 26, they were at VND43,300/share, equivalent to a decrease of 3.3%. BVH estimated that compensation for losses caused by Typhoon Yagi by September 18 was VND955 billion.

PTI shares of Postal Insurance recorded 5 sessions of increase and 3 sessions of stability in the last 10 sessions. This stock has increased compared to before the storm, as of September 26, it was priced at VND32,500/share compared to VND30,600/share on September 6.

It can be seen that the damage caused by the storm is severe. Insurance companies also have quite large reserves. As of the end of the second quarter of 2024, PVI had reserves of nearly VND 15,900 billion, of which compensation reserves were over VND 6,903 billion and unearned cost reserves were VND 8,519 billion.

Postal Insurance (PTI) estimated that by September 12, the compensation amount would be VND200 billion. This figure is not large compared to the company's reserves. By the end of the second quarter of 2024, PTI had reserves of more than VND4,082 billion, of which the compensation reserve was nearly VND1,424 billion.

Over the past year and a half, insurance businesses have faced many difficulties. Life insurance profits have declined due to a drop in sales as investment-linked insurance products are no longer as easy to sell as before. The Law on Insurance Business, which took effect in early 2023, and Circular 67, which came into effect late last year, have introduced stricter policies, focusing on protecting the rights of insurance participants.

Non-life insurance also recovered slowly as the insurance industry is suffering from negative prejudice from society, after more than a year of turmoil in the life insurance sector.

However, in the second quarter of 2024, some insurance companies recorded a fairly positive recovery. PVI's profit in the first 6 months of the year increased by more than 40% over the same period. BIC Insurance also had a similar growth rate. PTI in the second quarter of 2024 recorded a profit increase of nearly 8%.

The Vietnamese insurance market is still considered to have positive prospects and attract strong foreign capital. While many international insurance markets such as Germany have stopped growing, Vietnamese insurance still has a lot of room for growth because the economy is in the early stages of development.

Currently, at PVI, foreign investors are holding an overwhelming percentage of shares, with about 56%. At Bao Viet, Sumitomo Life holds more than 22%, and some other funds hold about 1.6%...

Farmers are heartbroken to see billions of dong 'fly away' with Typhoon Yagi . Super Typhoon Yagi swept through Hanoi, destroying 10 hectares of vegetables for harvest at Chuc Son Clean Vegetable and Fruit Cooperative. Leafy vegetables and fruit trees were broken and crushed, and water spinach was submerged in water.