Bao Viet Group Invests Heavily in FPT Shares, Faces Provisional Losses Amidst Market Downturn

Bao Viet Group (BVH), a prominent insurance entity, has made a substantial investment in FPT shares, injecting nearly 320 billion VND in the first quarter of 2026. This strategic move increased BVH's total holdings in FPT to 442 billion VND. However, this investment has encountered headwinds, with FPT shares experiencing a significant 25% decline during the same quarter, resulting in a provisional loss of approximately 5 billion VND for BVH after provisioning.

This financial maneuver contrasts with BVH's divestment from Vinamilk shares, reducing its investment from 419 billion VND to 351 billion VND. Meanwhile, its investments in ACB and CTG remain stable. As is characteristic of insurance companies with substantial cash reserves, BVH strategically allocates only a portion to stock market investments, with the majority placed in bank deposits and government and corporate bonds.

Despite the paper losses in its stock portfolio, BVH's financial revenue for the first three months of the year surged by nearly 26% compared to the same period last year. This growth was primarily fueled by a significant increase in interest income from deposits, reaching 2,290 billion VND amidst rising interest rates, and 1,401 billion VND from bond investments. Investment and trading in securities contributed over 41 billion VND. However, the group's core insurance business presented a less optimistic picture, with gross profit from insurance operations falling by nearly 47% to 307 billion VND, even as total claims and insurance payments rose while premium revenue decreased. Nevertheless, bolstered by its robust financial revenue, BVH reported a total after-tax profit of 815 billion VND, a nearly 19% increase year-on-year.