Military Insurance: A strong source of energy after listing with an ambitious 5-year plan

MIG shares of Military Insurance Corporation (MIC) created an attraction right after listing thanks to impressive business results.

MIC also revealed an ambitious 5-year plan: TOP 3 in terms of market share by 2025, leading in digital transformation, with a growth target at 3-4 times higher than the industry’s rate, and staying in the TOP in terms of operational efficiency.

MIG shares of MIC Insurance were officially listed on the Ho Chi Minh City Stock Exchange (HOSE) from January 2021 with the total listing value of MIG reaching VND 1,300 billion. This is the ripe fruit of a thorough preparation in advance.

The plan to move from UPCoM to HOSE has been carefully and well prepared by MIC, showing a high spirit of determination when the plan was approved at the 2020 Annual General Meeting of Shareholders. This is one of the MIC’s important tasks as stock listing on HOSE will help shareholders easily transfer their shares, thereby increasing the attractiveness of the stock. Accordingly, in 2020, despite the difficulties caused by the Covid-19 pandemic, MIC is still determined to carry out the above task and officially list shares according to the schedule assigned by the General Meeting of Shareholders.

The starting price was 15,550 VND/share. Currently, the market price of MIG shares has been around more than 17,000 VND/share. With EPS of 1,492 dong and P/E ~11.5 times, MIG stock has been well received by investors and is one of the stocks that attract most interest in the group of financial and insurance stocks on the exchange.

One of the factors that makes MIC Insurance highly appreciated by the investment public is that its business activities maintain good growth rate even during the difficult period of the pandemic.

In 2020, MIC Insurance recorded a net revenue of VND 2,402.5 billion, an impressive increase of 30% compared to 2019 number. Pre-tax accounting profit was VND 242.5 billion, up by 37.2%; profit after tax reached 193.9 billion dong, up by 36.7%.

MIC's achievements in the past year continue to affirm the correctness of the centralized business transformation strategy, in line with the goal of ensuring growth, safety, efficiency and sustainable development. At the same time, it shows the efforts and dedication of more than 1,800 MIC staff throughout the system. In addition to impressive business numbers, MIC continues to expand in scale with a system of 66 member companies nationwide, with 4,200 agents and current total assets reaching up to VND 5,551 billion.

MIC's multifaceted success in 2020 affirms the sustainable development of one of the leading insurance companies, affirming the high trust of customers in MIC's products and services.

Earlier in 2019, MIC achieved a revenue of VND 2,745 billion, achieving 110.3% of the year plan, ROE at 11.49%, ranking at the top of the market. Original insurance revenue reached VND2,507 billion, up by 30%, 2.4 times higher than the non-life insurance market rate. MIC's pre-tax profit in 2019 reached VND 177 billion, up by 30.7% compared to 2018; of which profit from investment reached VND 154.5 billion, up 31% over the same period.

Looking back over 13 years of operation, the first year's revenue was just over VND 100 billion, but in the following years, the original insurance revenue always grew by over 40%. From 2016 up to now, the Corporation has moved to phase 2 with the goal of sustainable development in addition to the spectacular progress in revenue and impressive profits. So far, MIC is among the top trillion companies, rated as 2/31 of insurance enterprises with a strong network system. In the past 5 years, the compound annual growth rate (CAGR) of original premium revenue is 24%/year, CAGR of profit after tax is 28% for 2020 in particular. Revenue from primary insurance activities in 2020 reached VND 3,157 billion, 4 times higher than the average of the non-life insurance market.
 

The above successes were attributed to MIC's early positioning of a different strategy: focusing on investment and strong development in technology and digitizing business activities. MIC is the first unit to apply a centralized indemnity assessment system, applying AI (artificial intelligence) technology to claim assessment.

In the future, MIC Insurance is fully confident to aim at the strategic goal of becoming the TOP 3 insurance enterprises in 2025, with a growth target of 3-4 times higher than the industry average. To achieve this goal, MIC focuses on a customer-centric strategy putting customers at the center of all service experiences, deploying a value chain model to create an insurance ecosystem. MIC is also shaping its stature as a retail insurer with a leading mindset on digital transformation; committed to bringing customers the best experience, protecting all customer needs…