Besides, LVI targets to boost total revenue to $14.5 million as well as pre-tax profit to $1.6 million and make positive steps in keeping abreast with Lao leading insurer, Allianz General Laos.
According to the plan, LVI will establish a new branch in Pakse province, equipped with an online insurance office and a customer service centre while simultaneously issuing more shares for the Association of Vietnam Investors in Laos to create connection with Vietnamese corporate projects running in Laos.
“Laos is considered a potential environment for insurance firms due to its rapid growth. Notably, in 2007, this country’s total premium revenue was $21 million. The figure increased to $80 million in 2013 and is forecasted to reach $135 million this year,” Hau added.
In 2008, the Bank for Investment and Development of Vietnam Insurance Joint Stock Corporation (BIC) cooperated with the Lao-Viet Joint Venture Bank (LVB) and the Banque Pour Le Commerce Exterior Laos to establish the LVI -the first foreign insurance joint venture by a Vietnamese company with a total chartered capital of $3 million. In 2013, BIC purchased the entire LVB share volume to own a 65 per cent stake in it.
During the 2012-2014 period, LVI has become one of the two biggest insurance companies in Laos, producing impressive growth in terms of basic financial ratios reporting an average of 38 per cent annual premium revenue growth and pre-tax profit growth of 71 per cent per year.
In 2014 alone, LVI’s total premium revenue hit $11.5 million with pre-tax profits of $1.36 million, an increase of 28 per cent and 82 per cent on year, respectively.