AIA Vietnam posts strong profit growth last year

HCMC, Mar 18, 2011AIA Vietnam last year gained pre-tax profit of VND139.2 billion, up a staggering 35%, and after-tax profit of VND103.4 billion, up 43% year-on-year.

Jamie Rains, CEO of AIA Vietnam, said at a press conference in the company’s 2010 performance on Wednesday that the insurer’s annualized new premium last year amounted to VND338.8 billion, increasing 24% from the previous year, while the renewal premium grew 22% to VND627.6 billion. He said this is the third consecutive year AIA has earned profits in Vietnam.

Ho Viet Ha, chief financial officer of AIA Vietnam, said that profits not only came from insurance business but also from the investment activity of the company in Vietnam.

Rains said they must find an investment channel generating stable earnings long-term because insurers have a responsibility to customers.

The investment portfolio of AIA Vietnam comprises 80% of Government bonds which can give stable earnings in the long term, and the remaining corporate bonds were guaranteed by the Government and put into savings.

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