Vietnam's insurance industry is witnessing a surge in strategic capital expansion, boosting investor confidence and reigniting interest in insurance stocks.
Key players are actively securing funds to solidify their financial foundations, signalling a shift towards long-term growth and market resilience.
A prime example is Post and Telecommunication Insurance Corporation (PTI), which has raised capital by issuing 40.2m shares, increasing its charter capital to over VNÐ1.2tn ($47m).
This move enhances PTI's capacity to expand operations, improve risk management, and strengthen financial security for policyholders.
Similarly, Military Insurance Company (MIC) is planning a public offering in early 2025 to raise additional capital.
On December 10, 2024, MIC completed its shareholder list for the 2024 offering, issuing 25.9m MIG shares at VNÐ10,000 each. The offering allows shareholders to purchase 15 new shares for every 100 they currently hold.
Another notable capital expansion comes from OPES Insurance, which has secured approval to raise its capital from VNÐ1.26tn to VNÐ1.9tn.
This influx of funds is expected to enable OPES to broaden its digital insurance offerings, utilising technology to attract younger, tech-savvy policyholders.
PVI Insurance also made significant strides in 2024, successfully increasing its capital twice within just five months, bringing its charter capital to VNÐ3.9tn.
These ongoing capital increases are vital for PVI, strengthening its financial capacity and boosting its competitiveness in the market.
Additionally, in 2024, three non-life insurance companies received in-principle approval from the Ministry of Finance to raise their capital.
Nine other non-life insurers applied for charter capital increases and were granted licenses for adjustments, collectively resulting in an approved capital increase exceeding VNÐ3.96tn.