According to the financial report for 2022 of the top 5 leading enterprises in life insurance, Prudential and Manulife Vietnam are the two insurers that saw sudden growth in profit after tax in 2022.
Prudential recorded VND 3,637 billion in after-tax profit, an increase of 670% compared to 2021 (VND 473 billion), which makes it hold the top position in the ranking of life insurance businesses. Manulife ranked second when it recorded a record profit after tax of VND 2,562 billion while in 2021 the company lost more than VND 4,742 billion.
Following is Dai-ichi Life Vietnam with after-tax profit in 2022 reaching VND 2,646 billion, down 5% compared to the previous year. Meanwhile, AIA and Bao Viet Life saw profit after tax increasing by 25% and 11%, respectively, to VND 1,110 billion and VND 975 billion.
The insurance industry report by Mirae Asset Vietnam said that in the period of 2015 - 2022, the business results of top 5 companies in the life insurance segment including Bao Viet, Dai-ichi Life, Prudential, Manulife and AIA remained quite stable as they have been far ahead the other companies in the same segment.
Statistics from the financial statements for 2022 of the above companies show that Bao Viet Life maintains its leading position in market share with premium revenue of VND 33,200 billion. Holding the second place is Prudential when recording insurance premium revenue of more than VND 31,000 billion in the same period.
Following is Manulife with a 10% increase in premium revenue compared to 2021, reaching VND 26,835 billion. Dai-ichi Life and AIA ranked 4th and 5th in terms of market share in the life insurance segment with premium revenue reaching VND 21,825 billion and VND 18,490 billion respectively in 2022.
In terms of growth rate, Dai-ichi Life ranked first with premium revenue growth of 17.2%. followed by AIA (12%), Manulife (10%), Bao Viet Life (9%) and Prudential (8%).
Since 2017, the trend that insurance companies cooperate with banks to cross-sell insurance, or bancassurance, has continuously become common.
A series of deals between banks and life insurance companies have taken place such as Manulife with Techcombank, VietinBank; FWD with Nam A Bank; Dai-ichi Life with SHB and Sacombank; Prudential with MSB, SeABank, VIB or AIA with VPBank and OCB.
According to Mirae Asset, the life insurance segment is still expected to be the main growth driver for the industry. The government sets a target that 15% of the population will participate in life insurance by 2025, compared with 11% in 2021. In particular, the penetration rate of total life and non-life insurance premium revenue is expected to reach 3.5% of GDP by 2025 (compared to 3.3% in 2021).
In response to recent information reflecting on the consulting quality of insurance agents, the Insurance Supervision and Administration Department (Ministry of Finance) has issued a written request to life insurance businesses to strengthen inspection and monitor the performance of agency contracts. At the same time, it is necessary to seriously handle the liability of insurance agents in case of violations of the law.
Source: Mirae Asset Vietnam
Compiled by VietnamCredit