BIDV increases capital for its insurance, securities businesses

The Bank for Investment and Development of Viet Nam (BIDV) yesterday increased charter capital for two of its major subsidiaries, BIDV Insurance Co (BIC) and BIDV Securities Co (BSC) to improve their competitiveness.

"BIC’ charter capital was raised from VND200 billion (US$12.5 million) to VND500 billion ($31.25 million) and becoming one of the biggest companies in this sector," said general director of BIDV Tran Bac Ha, "The company will be equitised at the same time as BIDV."

After equitisation, BIC will co-operate with American International Group (AIG) and operate under the parent corporation in both life and non-life insurance sectors.

Commenting on the increase of BSC’s charter capital from VND300 billion ($18.75 million) to VND700 billion ($43.75 million), the general director said. "There are over 55 securities companies, making competition increasingly fierce. I think, the increase of charter capital will be a boost for BSC and we will focus on underwriting services by supplying quality cover, beyond the capacity of many smaller companies."

For the first half of the year, BIC posted earnings of VND5.28 billion ($330,000). BSC reported a pre-tax profit of VND62 billion ($3.87 million), three times more than the same period last year, accounting for 15 per cent of its market value.

By the third quarter, BIDV plans to open a trading centre for banking, insurance and securities services in Ha Noi.

Source: VNS