Vietnam Insurance 2023 Tough Year

After a tough year in 2023, the business performance of life insurance companies hasn’t yet recovered. The companies are still struggling with economic difficulties and the consequences of last year’s confidence crisis. The financial reports for the second quarter of 2024 of many life insurance companies showed a marked fall in profits. Some companies even suffered losses, mainly down to their core business segments.

Prudential Vietnam Life Insurance Co - recently announced its 2024 semi-annual financial report, recording a pre-tax profit of 1.09 trillion dong or about US$44.2mil down 31.79% year-on-year (y-o-y), equivalent to a decrease of 509 billion dong.

The reason for the decline in profits is that Prudential’s original insurance premium revenue in the first half of the year only reached 11.14 billiondong, down 13.22% y-o-y.

AIA Vietnam Life Insurance Co - Meanwhile, a mid-year business performance report released recently by AIA Vietnam Life Insurance Co for 2024, showed that the company’s net insurance revenue hit 6.86 trillion dong while its pre-tax profit reached nearly 581 billion, down about 700 billion dong and nearly half of that compared with the same period last year, respectively. FWD Vietnam Life Insurance Co reported revenue of 1.96 trillion dong from its insurance business in the first six months of the year, down 22.5% compared with the same period last year. The company reported a net profit of 290 billion dong, down 70% compared with the same period in 2023.