Bao Minh Insurance (BMI) Plans 10% Stock Dividend, H1 2026 Profit Up 26.2%

Overview

Bao Minh Insurance (ticker BMI, HOSE) has approved a plan to pay its 2025 dividend in shares at a 10% ratio, issuing nearly 15.1 million new shares between Q3 and Q4 2026. The insurer also reported H1 2026 net profit of more than VND 181.1 billion, up 26.2% year-on-year, according to its reviewed semi-annual financial statements. The stock dividend follows a 5% cash dividend already scheduled for payment on 29 September 2026.

Key Facts

• Stock dividend ratio of 10%, or 10:1, meaning 10 existing shares entitle the holder to 1 new share; the new shares carry no transfer restrictions.
• Nearly 15.1 million shares to be issued, with total par value of more than VND 150.5 billion.
• Funding source is undistributed after-tax profit based on the audited 2025 financial statements of Bao Minh Insurance.
• Expected issuance window is Q3 2026 to Q4 2026; charter capital would rise from nearly VND 1,505.5 billion to more than VND 1,656 billion.
• A separate 5% cash dividend (VND 500 per share) was confirmed with a shareholder record date of 10 September 2026 and payment date of 29 September 2026, costing roughly VND 75.3 billion.
• State Capital Investment Corporation (SCIC) holds more than 76.3 million BMI shares, or 50.7%, and is due nearly VND 38.2 billion from the cash dividend.
• H1 2026 net profit reached more than VND 181.1 billion, up 26.2% year-on-year, on insurance business net revenue of more than VND 2,844.9 billion, up 5.8%.

What Happened

Bao Minh Insurance’s board of directors issued a resolution to implement the share issuance for the 2025 dividend, according to the company’s disclosure. Under the plan, existing shareholders receive one right per share held, and every 10 rights convert into one new share. The company said the additional capital will be used to meet conditions for expanding business operations, strengthening financial capacity, improving competitiveness in bidding, and complying with solvency margin requirements.

The announcement came shortly after Bao Minh finalized its shareholder list on 10 September 2026 for the 2025 cash dividend of 5%, equivalent to VND 500 per share, with payment set for 29 September 2026. On the operating side, the reviewed H1 2026 statements show insurance revenue of more than VND 2,844.9 billion, financial activity revenue of more than VND 137.3 billion (up 15.4%), and real estate investment revenue of nearly VND 3.7 billion (down 43.9%). Total assets rose 12.7% from the start of the year to VND 8,647.4 billion, while total liabilities increased 17.1% to VND 5,558.6 billion.

Market Context

BMI closed at VND 13,350 on 14 September 2026 on HOSE. The combined 5% cash and 10% stock dividend implies a total distribution of roughly 15% of par value against the 2025 profit pool, a level consistent with the insurer’s historical practice of paying annual dividends in both cash and shares. The stock trades in the Vietnamese insurance sector, where listed peers have generally maintained stable payout policies even as premium growth moderates. The capital increase keeps BMI’s solvency buffer aligned with regulatory requirements while SCIC remains the controlling shareholder at 50.7%.

Strategic Significance

The share issuance is primarily a capital-strength measure rather than a cash-return event. By converting retained earnings into charter capital, Bao Minh expands its underwriting capacity and bidding eligibility without drawing on cash reserves, which matters in a market where large industrial and infrastructure insurance tenders require minimum capital thresholds. The 26.2% profit growth in H1 2026, driven mainly by core insurance revenue rather than investment gains, supports the case that the capital is being added to a business that is already generating returns. For long-term holders, the key question is whether the enlarged capital base translates into higher premium volume or dilutes return on equity if deployment lags.

What to Watch

• The official issuance record date and shareholder list announcement for the 10% stock dividend.
• Confirmation of the charter capital increase to more than VND 1,656 billion after completion.
• Q3 2026 earnings release for evidence that insurance revenue growth is accelerating beyond the 5.8% seen in H1.
• Any change in SCIC’s 50.7% ownership stake and related foreign-ownership or state-divestment filings.
• Solvency margin disclosures in the next regulatory report, given the 17.1% rise in total liabilities.