Investment Management Objectives and Policies

1. OBJECTIVES AND POLICIES OF INVESTMENT MANAGEMENT

The company can carry out investment of capital in accordance with the prevailing regulations.

The company must retain a proportion of no lower than 25% of the total technical reserves to pay regular insurance indemnities. This amount can be deposited at prestigious credit institutions operating in Vietnam. The remaining of the technical reserves can be used for:

  • Purchase of government bonds or corporate bonds

  • Deposits at credit institutions;

  • Purchase of corporate shares or bonds, Capital contribution to other enterprises; Real estate business or loan provision.

The limits for each kind of investment assets must be in compliance with prevailing regulations on investment portfolio and the investment percentage, ensuring the capital's safety, efficiency and liquidity under the guidance of the Ministry of Finance.

The company must record and account separately for investments including investment amount and investment income from owners' equity and from technical reserves, ensuring that the recording of invested assets is conducted uniformly.

The Finance Director is responsible to establish appropriate procedures in place to ensure investment funds are managed in the most effective manner in accordance with the Investment Policy, Regulations and Guidelines to provide the optimal investment return, while minimizing the risks arising from investment activities.

2. POLICIES OF SOLVENCY MANAGEMENT

The Company has to maintain solvency throughout its business operation in accordance with prevailing Vietnamese regulations.

When the company’s solvency margin is lower than the minimum solvency margin, the company shall immediately and proactively apply measures to restore its solvency and, at the same time, report to the Ministry of Finance on the actual financial status, causes of that danger and plans on solvency restoration.

 

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