Petrovietnam Insurance Looking To Transform Into Holding Company

The PetroVietnam Insurance Company (PVI) has said it plans to transform itself into a holding company called PVI Holdings by July 18.

Company restructuring is aimed at shifting operations to subsidiaries set to conduct business on PVI's behalf.

"With the establishment of PVI Holdings, we aim to widen our business activities to include, amongst others, a fund management company," PVI Chairman Nguyen Anh Tuan said.

While depending on a single source of revenue is risky, a holding model can help generate diverse revenue resources and financial tools, according to Tuan.

Efficient information technology infrastructures, implemented by PVI members, would ensure operational consistency and information security, Deputy General Director Pham Khac Dung added.

"With the view to increasing capitalisation and corporate value, we plan to list shares on a foreign stock exchange as of early 2013," PVI General Director Bui Van Thuan said.

Selling PVI shares to the Oman Investment Fund had been postponed due to the necessity of finding strategic partners operating in the insurance industry as part of the restructuring process, Thuan said.

He added that the sale of company shares at higher than market prices had occurred due to assessment by partners rather than special conditions offered.

PVI revenues during the first half of the year reached more than VND3 trillion (US$145.6 million), 61.8 per cent of its yearly target and an increase of 18.6 per cent over the same period last year. Gross profits managed to reach VND220 billion (US$10.7 billion), 52.3 per cent of the yearly plan, an increase of 13 per cent compared to last year.

"While our target for the year will remain the same, we are about to conclude interim dividend payments," Tuan said.