Đang tải... (xem toàn văn)
to face the risk of going bankruptcy if debt continue to raise even higher than equity since it also means that Aviva’s liquidity ratio is rather low This proves that Aviva Vietnam’s debt managing pla.
to face the risk of going bankruptcy if debt continue to raise even higher than equity since it also means that Aviva’s liquidity ratio is rather low This proves that Aviva Vietnam’s debt managing plan wasn’t effective and the company need to work on a new better one for the year 2022 Secondly, comparing to the benchmark, Aviva’s debt ratio is still considered high in most of the years During 2011 and 2016, the company still have its debt ratio close to the benchmark However, thing started to change in 2017 when Aviva’s debt ratio started to fluctuated strongly, leaving the company with a rather high debt ratio comparing to the benchmark of 2021 Figure 1.9: Comparing Aviva’s debt ratio to the benchmark of 2011-2021 (Source: Bao Viet Life, Prudential, Manulife, AIA, Chubb, Daiichi, Prevoir, Cathay, FWD, Hanwha, Fubon, Generali, Aviva, Sun life, Phu Hung, BIDV met life and MB Ageas Annual Reports) Lastly, Aviva Vietnam, however, still have debt-to-equity ratios relatively high compare to the general benchmark during 2017-2021 This means that the company isn’t having an effective plan for debt managing (except for the 2017-2018 period) 2.3.3 Causes for the debt managing situation of Aviva Vietnam 2.3.3.1 Objective reasons • New to Vietnam’s insurance industry: Aviva, though has a long and impressive history in England, is relatively new to Vietnam insurance industry The company debut it headquarter in Vietnam since 2011 This partially explains why the company size is small and its ratios are quite poor compare to other insurance • firms Low capital volume: Being one of the youngest insurance firms in Vietnam, it’s easy to understand that Aviva Vietnam’s capital volume (VND 1.7 trillion) cannot be compare to other firms (VND trillion in average) Poor risk assessing capability: Aviva Vietnam’s risk assessment wasn’t as strong as other firms, considering the company lacks experiences in Vietnam insurance