The 2024 business performance report and the 2025 outlook

2024 BUSINESS PERFORMANCE REPORT

2024 continued to be a year of turbulence and challenges for the global economy in general and the Vietnamese insurance market in particular. In addition to the prolonged impacts of global economic recession, inflationary pressures, monetary policy adjustments, and shifts in consumer behavior, the year also witnessed significant climate change events - most notably, Typhoon Yagi, the most severe storm in the past 30 years.

In the face of these challenges, Bao Long demonstrated strong resilience by proactively adjusting its strategic direction, restructuring operations, and effectively implementing the 2023 - 2027 development strategy, which focuses on three strategic priorities:

Technologization

Enhancing operational capacity and service quality

Developing corporate culture and brand identity

Thanks to a consistent strategic vision and unified efforts across the organization, Bao Long maintained business stability, preserved its nationwide distribution and customer service network, and continued expanding new distribution channels such as bancassurance, agency networks, and digital insurance platforms.

At the same time, Bao Long placed strong emphasis on upgrading IT infrastructure, standardizing governance processes, strengthening workforce capabilities through targeted training, and promoting a customer-centric corporate culture.

The achievements in 2024 are clear evidence of Bao Long’s determination, adaptability, and resilience in navigating a volatile and challenging market environment - further reinforcing its position as one of the most reputable non-life insurance enterprises in Vietnam.

Financial performance

Business results

Items	2024 Planned Million VND	2024 Actual Million VND	Actual/Planned %
Insurance operation
Premium revenue	1,530,000	1,526,345	99.8%
Total expenses for insurance activities	1,277,972	1,306,590
Gross profit from insurance activities	252,028	219,755	87.2%
Financial investment
Financial income	77,000	101,960
Financial expenses	1,300	6,973
Gross profit from financial activities	75,700	94,987	125.5%
Other income	0	782
General and administration expenses	246,678	233,449
Profit before tax	81,050	82,076	101.3%

Premium revenue

1.526

Million VND

Profit before tax

82,1

Million VND

Assets and Resources

Items	2024 Planned Million VND	2024 Actual Million VND	Actual/Planned %
Professional Reserve Fund	774,429	861,456	111.2%
Owners’ equity	901,744	900,230	99.8%
Investment portfolio	1,440,847	1,504,147	104.4%
Total assets	2,382,000	2,575,593	108.1%

Business solutions implementation results in 2024

2024 marked the second year of Bao Long’s 2023-2027 business strategy, emphasizing three strategic priorities: (1) Technologization, (2) Operational Capacity, and (3) Culture and brand name. Additionally, Bao Long focused on five solution areas to achieve its goals: (1) Performance, (2) Expertise, (3) Creative Innovation, (4) KPIs, and (5) Bolding. The results achieved in 2024 are as follows:

Group 1

Performance

Launched the Megamind digital insurance system, covering asset, engineering, and reinsurance;
Completed the “API for Sales” protocol;
Officially launched the “Personal Insurance Distribution Platform” for motor vehicles and human service insurance;
Integrated online payment functionality;
Strengthened the management role of Regional Directors, transferring business center units to their oversight;
Restructured business operations in the Hanoi region, completing the centralized appraisal process.

Group 2

Expertise

Implemented staff rotation between Head office and various units;
Assessed the capacity of regional appraisers;
Strengthened the vertical management system, focusing on centralized data entry, finance and accounting, professional standards, and compensation appraisal.

Group 3

Creative Innovation

Improving operational efficiency through management enhancements:

Restructuring the reinsurance program to strengthen reinsurance capacity;
Reviewing and effectively managing insurance premium receivables;
Optimizing the cost structure across business units;
Standardizing the management process of printed materials to ensure scientific and efficient handling;
Gradually digitizing business processes by issuing policies online.

Group 4

KPIs

Deployed KPIs for Deputy Director positions across units and ensured salary payments for those meeting the established general standards;
Implemented KPIs for the recruitment of insurance agents within units and the Deputy Director team.

Group 5

Bolding

Implemented a series of initiatives to celebrate Bao Long’s 30^th anniversary, focusing on internal communication, employee engagement, and corporate culture. Activities included the “Bao Long - Carp Turning into a Dragon” video contest, a T-shirt design competition, the “Run for the Future” tournament, monthly lucky draws, “Afternoon LOL at Head office” gameshows, and anniversary gifts for employees.

Macroeconomic and Vietnam’s
Non-Life Insurance Market Prospects

Macroeconomic prospects

2025 is forecast to be another challenging year for global macroeconomy. Some factors such as political uncertainty, high inflation, monetary policy, fiscal policy and climate change will continue causing big pressures on countries.

Russia-Ukraine conflict and heightened tensions in Middle East continue to escalate. Although ceasefire talks and peace plan have been started, but it remains uncertain of timeline for end of war and conflicts. As a result, energy cost and global commodity and trade market continue to be affected.

In many economies, inflation rate still remains high, especially in countries hit by supply chain disruptions, increased energy costs and high food price. Some Central Banks such as FED and ECB continue to adjust monetary policies to curb inflation, however, it is not an easy goal to curb inflation.

The most significant projected risk to international trade and global economic growth is the United States’ protectionist trade policy. Tariffs are being used as a key policy tool targeting countries such as China, Canada, Europe, and others. In response, these countries have taken retaliatory measures, rapidly escalating tensions into a global trade war.

End of 2024, international financial organizations such as IMF, WB and OECD forecast that global growth in 2025 is projected at 2.7% - 3.3%, however, given the latest developments in the first quarter of 2025, more negative scenarios should be taken into account.

Vietnam Economy

In 2025, the Government has raised Vietnam’s GDP growth target to 8%, higher than previous target of 6.5 to 7%. However, it is forecast by international organizations that Vietnam economy faces many challenges and risks.

In the context of global trade war escalating, as a small country but an export-based economy, especially with a large trade surplus with the US, Vietnam is put under pressures to maintain trade balance, diversify export markets and increase spending, heavily invest in high value commodity from partners.

Inflation is forecast to remain high due to increased energy price, food costs and global elements. Lending interest rate is expected to slightly decline, creating more favorable conditions for companies to access capital. However, Vietnam economy’s capital absorption capacity is still limited, especially small and medium-size enterprises. This is demonstrated through low credit growth at 0.2% in the first 2 months of 2025.

The restructuring of the government apparatus at all levels is a completely correct step, providing momentum for long-term development. However, in the short term, it is inevitable that there will be disruptions in the operation of the system and the implementation of government policies.

Public investment, acceleration of public investment capital disbursement in 2025 will focus on key infrastructure projects such as transportation, energy and urban development. These projects are facing difficulties due to complicated administrative procedures, slow site clearance and ineffective capital allocation.

Beside socio-political issues, Vietnam is one of the countries that are most vulnerable to climate change, increasing negative impacts on agricultural production and infrastructure network.

Apart from possible risks, one bright spot that has positive impact on Vietnam economy is that the country continue to be an ideal destination for FDI capital flow. The comprehensive reform has created a new momentum for business and production communities, a network of infrastructure systems, especially closed highway system from North to South helps stimulate consumption, reduce cost and traveling time, open new opportunities for local economic development.

Overview of Vietnam’s Non-Life Insurance Market

In 2025, as forecast by Ministry of Finance, total gross written premium in field of non-life insurance is projected at nearly 86,000 billion VND, up nearly 10% compared to 2024. However, according to experts, it is a challenging plan when insurance market is facing impacts of global and local economies.

New legal framework has been basically completed, combining with strengthened inspections and supervisions of the authorities, this is a foundation for a safe, stable and sustainable development of insurance market in the coming time. However, some insurance companies still face difficulty in compliance with new policies, especially regulations on product system, new pricing, etc. which have direct impacts on market completion.

Impacts from climate change, natural disasters and diseases remain as a material risk, it requires fundamental changes from the market to adapt including improvement of financial capacity, well-designed pricing strategy to respond to risks, etc.

Bancassurance revenue is forecast to decline in the face of an existing crisis in consumer confidence. In addition, revenue from non-life insurance heavily depends on business performance of enterprises and consumption trend. Therefore, in the context of difficult economic conditions, revenue from retail insurance lines such as motor vehicle and human insurance and revenue of trade insurance lines such as property and marine insurance will be negatively influenced.

Beside difficulties in insurance business, downward trend in interest rate will have impact on revenue of insurance companies in the coming time when a majority of financial operating profits of non-life insurance companies earn from bank deposits.

Business solution
and action plan in 2025

In 2025, Bao Long will prioritize comprehensive solutions to enhance efficiency, expertise, and innovation. Key initiatives include advancing technology systems, streamlining processes, developing human capital, and strengthening team cohesion in preparation for its 30^th anniversary. The Company targets a 5% increase in insurance premium revenue and aims to reinforce its financial foundation for the next stage of growth.

Performance

Completing the final phase of Megamind system including maritime products, reporting system, financial planning sub-system;
Implementing online payment approval system - connecting with banks;
Reviewing, adjusting, building mechanism, internal labor regulations.

Expertise

Rotating management personnel between Head office and units;
Training “training skills” for professional management staff.

Creative Innovation

Implementing online payment solutions;
Revising reinsurance program to improve reinsurance capacity and operational efficiency.

KPIs

Evaluating the KPIs system implemented across the organization.

Bolding

Implementing a series of programs to celebrate Bao Long’s 30^th anniversary, aimed at enhancing internal communication, fostering employee engagement, and strengthening corporate culture.

Financial planning 2025

Items	2024 Actual Million VND	2025 Estimated Million VND	Growth %
Insurance operation
Premium revenue	1.526.345	1.609.000	5%
Total expenses for insurance activities	1.306.590	1.373.869
Gross profit from insurance activities	219.755	235.132	7%
Financial investment
Financial income	101.960	63.060
Financial expenses	6.973	2.000
Gross profit from financial activities	94.987	61.060	(36%)
Other income	782	-
General and administration expenses	233.449	240.135
Profit before tax	82.076	56.057	(32%)

Assets and Resources

Items	2024 Actual Million VND	2025 Estimated Million VND	Growth %
Professional Reserve Fund	861.456	922.093	7,0%
Owners’ equity	900.230	945.076	5,0%
Investment portfolio	1.504.147	1.635.853	8,8%
Total assets	2.575.593	2.681.000	4,1%

HUMAN RESOURCES AND TRAINING

Bao Long has constantly believed that by maximizing each employee’s motivation, Bao Long can increase customer satisfaction and continually increase The value for shareholders. Bao Long always Strives to create a working environment in which Every member feels satisfied with their work and Promotes themselves to continue development during the month.

0%

Employees holding university and postgraduate degrees

0%

Employees having over 10 years of experience in insurance industry

0

Total number of employees by
December 31, 2024

HUMAN RESOURCES DEVELOPMENT STRATEGY

Bao Long focuses on building a well-trained and highly qualified human resource capable enough to adapt to continuously changing and competitive business environment. Each individual is entitled to opportunity to self-train, challenge and uphold their talents in a unified work environment towards common goals.

Especially, Bao Long also focuses on developing a rich-experienced expert team, creating favorable conditions for them to work in an honest, open environment, promoting creativity and innovation. The Company also ensure appropriate remuneration policies, building pride and spirit of engagement.

HUMAN RESOURCES STRUCTURE

By December 31, 2024, total number of employees of Bao Long was 970, including:

58%

in Business Department.

75%

holding university and postgraduate degrees.

54%

are under 40 years old, young, dynamic and eager to learn.

27%

of employees with over 10 years of experience in insurance industry.

Bao Long is always updating new knowledge, making changes and improving work environment, building corporate culture as a solid foundation for employees to create optimal values to customers.

Bao Long maintains a competitive salary, bonus policy closely associated with business performance and work quality of each individual. In addition, the Company also provides attractive benefits to improve quality of life of employees, including:

Periodic health check.

Annual trip and vacation.

Health, accident, motorbike insurance.

Cash gifts on birthdays and holidays.

Bao Long commits to building a professional, dynamic work environment where each employee has opportunities to develop and contribute to the company’s overall success.

CHAPTER 01

INTRODUCTION OF
BAO LONG INSURANCE CORPORATION

CHAPTER 02

THE 2024 BUSINESS
PERFORMANCE REPORT AND THE 2025 OUTLOOK

CHAPTER 03

SUSTAINABLE DEVELOPMENT REPORT

CHAPTER 04

THE 2024 FINANCIAL REPORT

2024 at a glance

Message from the Chairman of the Board of Directors

Overcoming challenges

Reaching success