• We attended BMI’s online annual general meeting (AGM) on April 25. The Q&A session focused on BMI’s overall business outlook and potential divestment of major shareholders as well as a potential capital raising plan. 
• 2025 guidance includes total revenue of VND7.3tn (USD282mn; +5.1% YoY), profit before tax (PBT) of VND300bn (USD12mn; +10% YoY), and a minimum ROE of 10%. 
• Impact of the US reciprocal tariff: BMI is confident in the Government’s strategy, expecting limited impact and remaining committed to achieving its targets.
• Shareholders approved a dividend payment plan of 18.5% for FY2024, including (1) a 13.5% stock dividend and (2) a 5% cash dividend to be paid in Q3/Q4 2025. BMI also targets a dividend plan of 10% for FY2025. BMI stated that paying stock dividends will provide the company with better capacity to compete with its peers in terms of pricing, network expansion, service quality, and solvency position. 
• Shareholders elected Ms. Krithika – representative of major shareholder AXASA – as a new member for the BOD term 2025-2029 (replacing the previous representative who has resigned). 
• BMI expects the State will maintain its major ownership in 2026-2029.

BMI expects a lower combined ratio in 2025. In 2024, BMI focused on restructuring its health insurance business due to a post-COVID surge in medical visits, which raised claim ratios. The company is cautiously adjusting new health insurance sales and expects the restructuring to be completed by 2025. In the meantime, BMI is expanding its retail insurance offerings—particularly human-related and motor vehicle products—in select provinces to offset premium growth pressure. The company aims to lower its combined ratio in 2025 by cutting acquisition costs and curbing insurance fraud.

Management anticipates capital raising and new capital management adoption in 2026-2029. BMI is preparing for the implementation of the new Risk-Based Capital (RBC) model for insurance companies (adoption timeline by 2028). Although official regulations have yet to be issued, BMI expects early adoption to help to enhance liquidity risk management and provide a more accurate reflection of Bao Minh's financial health. To support its growth and improve solvency margins under the upcoming framework, Bao Minh plans to raise new equity (apart from paying stock dividends) to increase its charter capital from VND1.5n to VND2tn in 2026-2029.

Rebalance investment portfolio to optimize returns amid remained low interest-rate environment: The bank deposits portion will be reduced from 84% to 59%, while equity investment will rise from 4% to 15%, alongside a new 5% allocation to investment entrustment and an increase in bond investments from 5% to 13%. Corporate bond investments are confined to bank-issued bonds, reducing risks. BMI continues to prioritize earning returns from idle capital rather than relying on insurance activities profits. BMI will increase equity allocation when market conditions are favorable, ensuring risk management.

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