BMI - Lower claims compensate for low financial income

BMI released business results for H1 2022 with gross written premium of VND2.8tn (USD119mn; +14.1% YoY) and NPAT of VND140bn (USD6.0mn; +2.7% YoY), achieving 49% and 45% of our FY2022 forecasts, respectively. The slight increase in the bottom line was mainly due to (1) a 14.1% YoY increase in gross written premium and (2) 2.2% YoY decrease in claim expenses that outweighed (3) a 19.2% YoY increase in underwriting expenses and (4) 33.2% YoY decrease in net financial income.

- H1 2022 total direct premium was VND2.5tn (USD106mn; +14.4% YoY).

- H1 2022 net written premium (NWP) was VND2.1tn (USD89mn; +16.8% YoY), implying a retention ratio of 74.4% vs 74.0% in 2021 and fulfilling 48% of our full-year forecast.