Petrolimex Joint Stock Insurance Corporation (Pjico) marked its 20th birthday on June 15. Known as the ever first joint stock insurance enterprise in Vietnam established by six founding shareholders: Petrolimex, Vietcombank, Vnsteel, Vinare, Matexim and Hanel, Pjico demonstrates a reality of Petrolimex vision in realizing the Party and State major guidelines on restructuring the Vietnam’s economy for successful integration. On the occasion of the 20th anniversary of the establishment of Pjico, the Công Thương (Industry and Trade) magazine prints an article by Petrolimex Board of Management member – Chairman of Pjico Board of Directors Dinh Thai Huong.

Petrolimex Board of Management member – Chairman of Pjico Board of Directors Dinh Thai Huong

20 years affirms a vision

Pjico owned an initial capital of just VND33 billion (US$1.5 million) and eight frame cadres when it was formed on June 15, 1995.

Twenty years has gone by and Pjico now becomes a strong provider in Vietnam’s the non-life insurance market, a brand name of Responsibility and Belief.

First and foremost, I would like to express our deep gratitude to a strategic vision which gave birth to the present Pjico. Then come the efforts of the preceding generations to have built up a solid foundation for the company’s growth, and the systematic operation of Petrolimex cadres and employees which has enabled them to share joys and sorrows with Pjico since its infancies so as the company can take steady steps forward.

It is very the belief and affection of shareholders, partners (both at home and abroad), fellow traders, and Vietnamese people who have supported Pjico through practical activities since the company was set up until it becomes “a 20-year-old young man” that helps Pjico to be known far and wide on the insurance market as present.

Surely enough, the current achievements were crystallized from the past. Any successful individual will remember “the time s/he lived in misery and want”. It is also the common atmosphere at Pjico when it celebrates its 20th birthday.

Three stages of development

The first five years (June 15, 1995-2000) was the time Pjico built up its foundation. From four branches which were set up in Hai Phong, Da Nang, Ho Chi Minh and Can Tho cities, Pjico gradually expanded branches to other key provinces and cities: Quang Ninh, Nghe An and Hue (1996), Quang Binh and Khanh Hoa (1997).

Human resources developed in parallel with the expansion of the network. New recruits came from Petrolimex’s subsidiaries based on the same locality, and other related economic sectors or were fresh grads. The number of cadres with long experience in insurance remained modest, however, all understood that experience would be gained through practice; thus, they focused on constructing and completing processes and regulations for long-term operation and development in the following stages.

During its inception period, insurance sales were mainly accumulated through Petrolimex activities. Until 2000, Pjico reached a turnover of VND130 billion (US$6 million), which gave pleasure to 200 Pjico cadres and employees at that moment whilst the source of capital was preserved and then expanded to VND55 billion (US$2.53 million).

This is the most challenging but significant period that set the foundation for the development of Pjico in the following stages.

The inception of Pjico has blown a breath of fresh of air, a new face into the Vietnam’s insurance market and brought about a novel choice for Vietnamese people.

The next 10 years (2000-2010) was a boom. Besides the increasingly raised charter capital from VND70 billion (2002), to VND140billion (2004), VND300 billion (2006) and VND709 billion (2010); the company opened new branches in other cities and provinces. By 2010, Pjico had developed a network of 50 branches nation-wide with a human resource of 1,300 cadres who demonstrated steady professional capacity and rich experiences, which helped the company make a breakthrough.

That more than 80 insurance products were developed synchronously in all professional sectors gave rise to a breakthrough growth. During this period of time, Pjico recorded impressive growth rate: 50-70%/per year in the 2000-2005 period and 30%/per year in the 2005-2010 period. In 2010, the corporation reached a gross turnover of VND2,100 billion, a 16-fold increase as compared to 2000; whereas the net asset value increased by three times in comparison with the charter capital, and on average the company’s annual contribution to the State budget was over VND100 billion.

By 2010, Pjico had secured 10% of the market share of the Vietnam’s non-life insurance market which accommodated both Vietnamese enterprises and well-known foreign ones that were doing insurance business following the open-door policy of the Vietnamese Government.

Pjico started insuring large projects and big clients, including: Petrolimex’s and Vosco’s ocean liners; the upgrading of National Highway 1A; the construction of Nghi Son, Hoang Mai and Tam Diep cement plants, and large hotels and high buildings in Ha Noi and HCM City such as Daewoo, Sheraton, Diamond Plaza; Dai Ninh and Se San hydropower plants, Cao Ngan Thermo-Electricity Plant, and Can Tho, Bai Chay and Thanh Tri bridges, among others.

Pjico’s business efficiency during this period of time ensured employment for laborers (the monthly income increased from VND2 million to VND6 million per head) besides the interests of shareholders (dividend, 9%-12%/year). Pjico actively participated into community’s social welfare activities, specifically, the company supported Vietnamese Heroic Mothers, expressed gratitude towards families that made considerable contributions to the nation, took part in the national sustainable poverty reduction program in line with the Government’s Resolution No. 30a, and movements launched by Petrolimex to share the sorrows with those living in hardship because of war aftermaths, natural disasters, or misfortune in life.

Since 2010 to the present, Pjico has maintained a sustainable and intensive growth. Along with the development of Petrolimex in accordance with a development strategy project approved by the Prime Minister Nguyen Tan Dung; Pjico was approved by the Ministry of Finance to become a Corporation with 55 member companies following the License No. 67/GPDC01 dated March 25, 2013. This was a significant milestone in the development of Pjico in the direction towards successful integration and competition in the new stage.

Pjico has focused on enhancing the professional qualifications of the leadership, managers, and staff; besides activities to administer business in accordance with ISO 9001-2000 standards, completing organizational structure, and improving product quality on the basis of renewing traditional products. Pjico has also studied and designed sales/service supply channels including Bancassurance, Telesale, and online, etc; jointly invested into the construction of Power-driven Vehicle Rescue and Repair Companies in Hai Phong City and Quang Ninh Province to improve post-sale service quality.

The non-stop efforts of Pjico cadres and laborers over the past 20 years have successfully built up a popular brand - Pjico. Among Petrolimex’s brand names, Pjico has been recognized by JWT Vietnam as a responsible and prestigious brand in the Vietnam’s insurance market. The visual images of Pjico symbolize a pair of hands taking a loving care of human life whereas PJICO letters feature Petrolimex’s typical colors, shining from its own internal strength.

Firmly believing its own internal strength, Pjico has established partnerships with big and prestigious partners in the world to employ the “two-way” principle in business development. Pjico has worked with Munich Re (Germany), CCR (France), Mitsui and Sumitomo (Japan), and Korean Re (South Korea) in the sector of reinsurance, and with AON, Marsh, and Guy Capenter, among others in insurance and reinsurance brokerage. Pjico currently purchases reinsurance from markets including South Korea, Russia, Malaysia, Indonesia, and Venezuela.

The more efficient Pjico performance is besides investments for intensive growth, the greater the interest of shareholders is (9-10%/year), and the bigger the contribution to State budget is (contribution in the following year is always higher than previous years, and currently stands at VND200 billion/year). The employees’ income has increased in equivalence with labor productivity (the annual turnover per capita reaches VND1.4 billion); and social charity works have significantly grown in quantity, value and beneficiaries.

Apart from the completion of expertise and corporate administration, Pjico has formulated a Code of Conduct based on Petrolimex corporate culture and supplemented typical features from the insurance sector.

Pjico takes steady steps forward

The leadership and the whole staff of Pjico are exerting themselves (in the medium term) to: develop Pjico into a leading non-life insurance corporation in Vietnam, expand its market and become an intimate friend of each Vietnamese, a trustworthy company for enterprises, plants, projects, and means of transportation which are, through nights and days, carrying goods to every corner in the country, across the border to the world outside and from overseas to Vietnam.

Pjico is absolutely confident of its targets, due to the “correct orientation, effective administration will surely bring home the bacon” practice of the Petrolimex leadership on the basis of Petrolimex’s “petrol soldiers’ quality and professionalism” or “the Petrolimex soldier’s quality and human affection”. With the colors and spirits of Petrolimex and the efforts of all Pjico cadres and employees in inheriting gained achievements, Pjico has renewed and created both popular and in-depth insurance services on its own initiative.

Noble awards granted by the Party, State, ministries, sectors, industries and localities have provided Pjico with an extremely considerable encouragement for its growth in the new stage. The company of partners and customers both at home and abroad, of more than 3,000 agencies; the belief and affection of the majority of shareholders, clients, and Vietnamese consumers have built up the confidence for Pjico staff in the new stage of development.

We will strive together to “Taking You Further”!