Hanoi (VNS/VNA) - Insurance companies performed well in Vietnam during the COVID-19 pandemic, buttheir shares have not attracted much attention from investors.

There are 11 insurance firms listed in Vietnam's stock market with threecompanies onUPCOM.

In 2020, Bao Minh Insurance Corporation (BMI) shares recorded a growth ofnearly 22 percent, while Bao Viet Holdings (BVH) and BIDV Insurance Corporation(BIC) decreased by 4.3 percent and 9 percent respectively.

In the third quarter of 2020, BMI reported revenue from premiums of 905.48billion VND, an increase of 2.1percent year-on-year, while profit before tax increased nearly 47 percent to 78.89billion VND, according to thirdquarter financial results. In the first nine months of 2020, profit after taxesreached more than 158.4 billion VND,up 15 percent year-on-year.

BVH and BIC also witnessed big returns during the same period. BVH earned 9,593billion VND from premiums in thethird quarter, up 6.2 percent year-on-year, while profit after tax up 29.4percent to 473.31 billion VND.

Similarly, BIC saw an increase of nearly 13 percent year-on-year to 697.3billion VND in premiums revenue, withprofit after tax of 755.9 billion VND,up nearly 21 percent.

Data from the Ministry of Finance showed in the first eleven months of 2020,premiums revenue from insurance firms rose 16 percent year-on-year to 449.4trillion VND. Of which, revenue fromnon-life insurance reached 54.2 trillion VND,and from life insurance 111.6 trillion VND.

In 2020, total premiums revenue was expected to reach 182.7 trillion VND, up 15 percentyear-on-year.

The growth of the insurance market has been stable so far, but its size in themarket is still small compared to its capability. Experts see further room forthe market to expand.

According to a report from Bao Viet Securities, Vietnam is among countries withthe fastest growth in the insurance sector during the 2016 – 2020 period, onthe back of diverse needs in social welfare and medical care, as well as risinginsurance needs in retirement, especially in a health crisis like last year.

Some companies, such as BVH, PVI Holdings (PVI) and Post-Telecommunication JointStock Insurance Corporation (PTI), have attracted more new customers thanothers.

With potential in expanding activities in many areas and connecting to bigfinancial organisations, the demand for capital among insurance providers willincrease gradually.

Focus on small companies

Instead of big companies, investors sought more interests in small insurancefirms such as Bao Long Insurance Corporation (BLI), Agriculture Bank InsuranceJoint Stock Corporation (ABI), PTI or Petrolimex Insurance Corporation (PGI).

In 2020, the price of small insurance companies' shares also rose sharply, suchas BLI shares price increased nearly 49 percent, ABI rose 34.8 percent, PTI up24.3 percent, and PGI up nearly 20 percent.

However, the growth can not be compared to other sectors like banking which wasup more than 100 percent, such as Saigon Hanoi Commercial Joint Stock Bank (SHB)which increased more than 153 percent.

Since insurance is a part of the financial sector, it's market expectation isas high as banking or security, Nguyen Hong Khanh, head of analytics of VietnamInternational Securities Joint Stock Company (VISE), toldtinnhanhchungkhoan.vn. But the number of insurance stocks in the market isstill low, so investors' attention is diverted to other sectors.

While investors are still searching for new and promising investments, there isa possibility they will only focus on well-known insurance firms with aproven track record and high potential for growth./.