Dear Valued Shareholders, Customers and Business Partners

2016 was a successful year for Vietnam, given macroeconomic stability, low inflation and gradual growth recovery. The local insurance market posted a strong growth with the total premium income amounting to VND87,563 billion, up 37% YoY; of which, the non-life insurance premium income surged by 15% to reach VND37,197 billion. However, the year also witnessed many natural disasters and calamities as well as fierce competition among insurers in the market. Despite a constant increase in the claim payment amount, many insurers were willing to lower the premium payable and offer extended coverage, making the insurance business riskier than ever.

Running a finance and insurance business in such a competitive environment was really a challenge for every company. However, fueled by the Board of Directors’ due attention and guidance and the Management Board’s dynamic and flexible business administration, Post and Telecommunication Joint Stock Insurance Corporation (PTI) fulfilled the tasks and targets put forward by the General Meeting of Shareholders. Accordingly, PTI’s direct insurance premium income totaled VND3,096 billion, equaling 103.2% of the annual plan and representing a YoY growth of 25% and consistently ranked in the top three insurers with the largest market share. The corporation also declared a dividend payout ratio of 12%, the highest level among local insurers.

In addition to this encouraging growth, PTI continued to standardize its organizational model at the head office, improve service quality, expand its distribution channels, upgrade service processes, promote brand development and communication and build a team of professionals but still embraced its distinctive corporate culture: Unity - Discipline - Civilization - Friendliness - Innovation.

In 2017, PTI will face numerous difficulties and challenges, especially regarding loss ratio control and financial management. We, as a whole, would become more united, strive our best and base ourselves on the development orientation set forth by the Board of Directors and the Management Board in order to accomplish the goals set by the General Meeting of Shareholders, maintain a high dividend payout ratio of 12% and meet your expectations. I strongly believe that in the future, PTI will become a leading non-life insurance retailer that has the largest sales and customer service network and offers the best customer service in Vietnam.

On behalf of the Board of Directors, the Board of Supervisors, the Board of Management and all of PTI’s employees, I would like to express my deepest gratitude and warmest thanks to you for your trust, support and cooperation over the past years. PTI always wishes to be a long-term reliable partner and to walk with you on the road to success.

CEO

BUI XUAN THU