Insurance corporations see earnings plummet on inventory buying and selling losses


By Tat Dat  &nbspAugust 11, 2022 | 06:55 pm PT

An investor appears at inventory costs on a smartphone at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Insurance corporations reported double-digit falls in earnings for the second quarter regardless of rising revenues after their securities market investments returned losses.

Baoviet Insurance, the largest participant, noticed earnings plummet by 28% year-on-year to VND317 billion ($13.55 million).

Petrolimex Joint Stock Insurance Company (PJICO)’s earnings tumbled by 30% to VND73.9 billion, and BIDV Insurance Corporation (BIC)’s by almost 50% to VND49.9 billion.

Military Insurance Corporation (MIC) reported a 78.5% fall to VND16.9 billion regardless of gross sales rising at 24%.

In six weeks beginning April the benchmark VN-Index misplaced a fifth of its worth, falling from 1,524.7 factors to 1,171.95 on May 16.

Baoviet misplaced 74% by marking its inventory holdings to market, and BIC and MIC misplaced 24% and 32%.

Brokerage VnDirect Securities mentioned inventory market investments generate most of insurance coverage corporations’ earnings although financial institution deposits and bonds often account for 90% of their portfolios, with the remaining 10% shared between fairness and property.

Insurance corporations’ earnings would develop this yr on the again of the inventory market’s restoration and better rates of interest, it added.


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