Vietnamese Insurers Still Operating Profitably

 

Statistics showed that, in the first six months of this year, total premiums from initial underwriting operations reached VND11.91 trillion, up 11 per cent on-year. Of the sum, non-life insurance premium was estimated to reach VND6.28 trillion, up 13.5 per cent on-year, life insurance premium at VND5.36 trillion, up 8.4 per cent and the rest held by insurance brokerage and reinsurance activities.

As of July 15 this year, PetroVietnam Insurance Joint Stock Corp (PVI) earned the total revenue of VND2 trillion between January and June this year, up 38 percent on-year and fulfilling 60 per cent of the year’s target. Bui Van Thuan, PVI General Director said, the firm’s good achievements were attributed to its stable goods sources and efforts to raise services quality. Furthermore, PVI expanded its operation to aviation insurance. Currently, PVI accounts for 32 per cent of the Vietnamese non-life insurance premium. The firm is expects to obtain revenue of VND3 trillion.  

 

Another non-life insurance firm, Post and Telecommunication Joint Stock Insurance Company (PTI) achieved total revenue of VND225.8 billion in the first half of this year, up 48 per cent on-year and meeting 52 per cent of the year plan.

 

BIC also achieved encouraging business results between January and June this year with total revenue of VND213.7 billion, including VND141.3 billion from insurance investment and business activities, up 37.6 per cent compared to the same period last year. As of June 30 this year, the company’s total assets, owner equity and provision funds reached VND1.18 trillion, VND463.5 billion and VND148.4 billion respectively. The company made pre-tax profit of VND20.07 billion, excluding the return of provisions for equity devaluation exercised in 2008. Bancassurance have continued growing well and contributed VND10.5 billion to the company’s total revenue.

Bao Viet Life Insurance carried out around 78,500 policies, bringing revenue of VND300 billion, up 32 per cent. In the reviewed phase, it earned gross premium of VND1.9 trillion, up 5.6 per cent on-year.

 

Topping the new policies in the first half were foreign insurers which have operated in Vietnam for a long time. According to initial statistics, foreign life insurance companies posted new premium in June, excluding Prevoir, increased by 32 per cent compared to May and 42 per cent against April this year. Prudential obtained premium of VND98.7 billion in June alone, up 33.4 per cent compared to May and up 50.7 per cent against April 2009. Manulife’s premium was estimated at VND29,3 billion in June, up 12.9 per cent and 33.5 per cent against May and April respectively. AIA posted premium of VND23.8 billion in June.

 

Although GEL's premiums from new insurance policies in June only equaled 34 percent of Korea Life's in June, but Great Eastern Life still took the lead in the country’s life insurance market in June with an increase of 282.5 per cent against May. Great Eastern Life has just received the Ministry of Finance’s approval to raise its registered capital to VND830 billion from VND230 billion.

 

Meanwhile, despite being a new player in the local insurance market, Korea Life has continued making successes with premium of VND4.5 billion in June this year, higher than its forerunner’s like Cathay (with VND4 billion) and Great Eastern Life (VND1.53 billion).

 

ACE Life also made big breakthrough with revenue of VND35.888 billion in June, up 134.4 per cent against May this year, but down up to 38 per cent compared to April.

 

At present, the Vietnamese insurance market is now home to nearly 50 firms, including 11 life insurers with the majority being foreign ones. The figure will be rise in the coming time as the local insurance market is said to own big potentials.