PJICO is about to "change its clothes", paying 2023 dividends in cash, rate of 12%

PJICO is one of the most profitable specialized corporations in the Petrolimex ecosystem and continues to be one of the top units in the market in terms of effective business operations.

PJICO is among the top efficient enterprises, despite the general difficulties of the industry.

On April 10, 2024, Petrolimex Insurance Joint Stock Corporation (PJICO, code PGI) held the 2024 Annual General Meeting of Shareholders (AGM) to approve many important contents.

Reporting at the Congress, PJICO leaders said that with pre-tax profit reaching VND 283.68 billion, in 2023 PJICO not only completed 111% of the plan and grew 12.3% compared to 2022, but also became one of the specialized corporations with the highest profit in the Petrolimex ecosystem and continued to be one of the top units in the market in terms of effective business operations.

The 2024 Annual General Meeting of Shareholders (AGM) approved many important contents.

According to data from the Vietnam Insurance Association, the total revenue from non-life insurance premiums in 2023 of the entire market will reach about VND 71,064 billion, an increase of 3% compared to 2022. Despite the extremely difficult market context, in 2023, PJICO's total revenue will reach VND 4,847 billion, completing more than 100% of the plan; original insurance revenue will reach VND 4,023 billion (reaching the VND 4,000 billion mark for the first time) - completing more than 100% of the plan; the growth rate in 2023 compared to the previous year is 6.7% - 2.2 times higher than the market growth rate.

Compared to the top 10 insurance companies, PJICO's businesses with outstanding revenue growth in 2023 are in the fields of motor vehicle, marine, health insurance...

Specifically, motor vehicle insurance revenue grew by 3.9% - higher than the overall market growth rate, raising PJICO's market share to 8.6%; marine insurance completed 122% of the annual plan, accounting for 11.4% of the total market share (the overall market growth rate was negative 2.9%); health insurance grew by 25.3% (the overall market growth rate was 0.3%); technical project insurance grew strongly by 61.9% - nearly double the market growth rate, raising PJICO's market share from 5.9% at the end of 2022 to 6.9%.

In addition to growth in revenue and profit, this insurance company also continues to be one of the insurance companies with the largest fluctuating reserve fund balance in the market. In 2023, PJICO continues to be rated by AMBest - the world's leading financial credit rating organization - at "B++" (good), with a stable outlook, and the issuer's credit rating at "bbb" (good), and AM Best has added a National Scale Rating (NSR) of "aaa.VN" - the highest level in Vietnam.

According to the profit distribution plan approved by shareholders, PJICO plans to pay a 12% dividend, all in cash, to shareholders. With a charter capital of nearly VND1,109 billion, this insurance company will pay VND133 billion in dividends.

In 2024, PJICO aims to achieve total revenue of VND4,768.5 billion, of which original insurance revenue is VND4,024 billion (not lower than the results achieved in 2023). The company targets pre-tax profit in 2024 at VND288.8 billion and plans to pay cash dividends at a rate of 10% of charter capital.

New clothes to prepare for new development stage

PJICO presents new brand identity to shareholders

The 2024 Annual General Meeting of Shareholders also marks the end of the old term, approves the business strategy, and re-elects the Board of Directors for the new term (2024-2029) .

In the 5-year period (2019 - 2023), PJICO's total revenue increased by VND 1,179 billion with an average growth rate of 5.7%; original insurance premium revenue increased by VND 957 billion with an average growth rate of 5.6%; pre-tax profit growth rate was 7.2%; total assets increased by VND 1,605 billion with a growth rate of 5%. The large fluctuation reserve fund ratio increased by 5% - equivalent to the growth rate in revenue. The average cash dividend/charter capital ratio was 11.4%.

Notably, the insurance company also decided to "change its appearance" by launching a new brand identity in line with its business orientation in the next 5-10 years, continuing the business performance of the previous period, entering a new development phase that promises to be better and more sustainable.

Setting a target for the period 2024 - 2029, PJICO's Board of Directors agreed and was approved by shareholders for the plan of original insurance revenue and pre-tax profit to grow positively by an average of 5%; ensuring annual dividend payments of at least 8% on average of charter capital in cash; continuing to maintain and improve international credit ratings...

Reporting to shareholders, Mr. Pham Thanh Hai - Chairman of the Board of Directors also emphasized that PJICO's business strategy was carefully considered and evaluated by the Board of Directors and the Board of Management, building 3 growth scenarios based on many parameters to build a general plan. The above targets are the minimum numbers set to ensure that the enterprise accumulates, increases the scale of equity as well as ensures the solvency margin, and increases financial capacity.

To achieve this plan, PJICO leaders said they will focus on developing business groups and exploitation channels. In particular, the company will focus on strengthening relationships with large customers, deploying insurance for FDI enterprises and SMEs...; synchronizing technology and communication solutions to promote the development of online insurance channel revenue. At the same time, PJICO will proactively review and analyze the causes of the decline in the proportion of each business and each customer group, thereby proposing solutions to restructure key and potential products to improve the competitiveness of the Corporation.

“PJICO's core goal is still to develop safe - sustainable - effective business, comprehensive digital transformation, and improve customer experience” - PJICO's leadership representative emphasized.

Continue to elect Mr. Pham Thanh Hai to hold the position of Chairman of the Board of Directors for the 2024 - 2029 term

Shareholders' Meeting elected 7 members to the PJICO Board of Directors for the 2024 - 2029 term

The 2024 PJICO General Meeting of Shareholders also voted to approve the list of members of the PJICO Board of Directors for the 2024 - 2029 term. After the meeting of the new term Board of Directors, the members unanimously elected:
- Mr. Pham Thanh Hai - Chairman of the Board of Directors
- Ms. Nguyen Thi Huong Giang - Member of Board of Directors, General Director of PJICO
- Mr. Lee, Jae Hoon - Member of Board of Directors
- Ms. Ha Kim Anh - Member of Board of Directors
- Ms. Tran Thi Bao Ngoc - Member of Board of Directors
- Ms. Truong Dieu Linh - Member of Board of Directors
- Ms. Le Thi Lan Anh - Member of Board of Directors

Source