5 life insurance giants in Vietnam: AIA, Prudential, Dai-ichi Life, Manulife, Bao Viet – who has the highest profit?

There are two life insurance companies that reported extraordinary profits last year.

According to statistics from Mirae Asset Vietnam Securities Company (MASVN), in the period of 2015-2022, the revenue market share of the Top 5 life insurance companies remained quite stable, including Bao Viet Life, Dai-ichi, Prudential , Manulife, AIA, and this group kept a large distance from the rest. The 2022 financial report shows that Prudential continues to be the life insurance company with the second largest market share in the Vietnamese market, after Bao Viet Life. The company's insurance premium revenue reached more than 31,000 billion in 2022, an increase of 8.3% compared to 2021. Next is Manulife with insurance premium revenue reaching 26,835 billion VND, an increase of 9.5% compared to the previous year. Dai-ichi Life had the highest growth rate (17.2%), recording premium revenue of VND21,825 billion, ranking 4th in the market. AIA with premium revenue of VND18,490 billion, up 12.3% and is the enterprise with the 5th largest market share in the life insurance sector in Vietnam.

Regarding profit, Bao Viet Life said that its after-tax profit in 2022 reached VND975 billion, an increase of 11.4% compared to 2021. While Prudential and Manulife reported extraordinary profits, Dai-ichi and AIA fluctuated slightly compared to the previous year. Specifically, Prudential Vietnam had the highest profit in the market, with pre-tax profit in 2022 reaching VND4,504 billion, 8.7 times higher than in 2021; after-tax profit reached VND3,637 billion. Accordingly, the accumulated undistributed after-tax profit by the end of 2022 of this insurance company amounted to VND12,377 billion. Manulife Vietnam was even more surprising when in 2022 it had a pre-tax profit of VND3,251 billion and an after-tax profit of VND2,562 billion. Meanwhile, in 2021, the company reported a pre-tax loss of VND5,927 billion and an after-tax loss of VND4,742 billion. For AIA, pre-tax profit last year reached VND1,380 billion, an increase of VND280 billion compared to 2021. After-tax profit reached VND1,110 billion. Dai-ichi Life Vietnam had less positive business results, with pre-tax profit in 2022 reaching VND3,304 billion, a decrease of VND200 billion compared to the previous year. After-tax profit reached VND2,646 billion.

Cooperating with banks to distribute insurance (bancassurance) in recent years has been one of the factors driving the strong growth in business results of life insurance companies. It is known that Prudential is currently the exclusive insurance distribution partner through banks such as MSB, SeABank, VIB. Meanwhile, Dai-ichi Life has cooperation with SHB , Sacombank. Manulife also has agreements with Techcombank, VietinBank. AIA is a partner of VPBank, OCB. To have a handshake with large banks, many insurance companies have had to pay thousands of billions of VND in prepayment fees before signing contracts. That is also the reason why the profits of many life insurance companies have fluctuated strongly in recent years, and can change from loss to profit after only a few years. In addition, insurance companies are also promoting digital transformation, cooperating with e-commerce companies, fintech, ... helping to increase revenue sharply in recent times. According to experts, the potential of the life insurance market is still very large in the long term when the rate of population participating in insurance in Vietnam is relatively low compared to other countries. However, the development of this market needs to be more quality and professional, because in the past, there have been many negative comments from consumers about this industry. Recently, the Department of Insurance Management and Supervision has also requested life insurance companies to strengthen inspection and supervision of the implementation of insurance agency contracts, evaluate the quality of consulting, introducing and selling insurance products of insurance agents. At the same time, life insurance companies require agents to provide complete and accurate information about the insurance products of the insurance company to the insurance buyer. When customer complaints arise, insurance companies must proactively work and resolve customer complaints.

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