Dai-ichi Life Vietnam Insurance: Profits decline, "pouring" tens of thousands of billions into bonds

In the first half of 2025, Dai-ichi Life Vietnam's gross profit from insurance and financial investment activities decreased compared to the same period. Notably, this life insurance company is "pouring" tens of thousands of billions into bonds.

Dai-ichi Life Vietnam's insurance sales profit decreased by more than 20% in the first half of 2025

Dai-ichi Life Insurance Company Limited (Dai-ichi Life) was established in January 2007 and is the first 100% Japanese-owned life insurance company in Vietnam. By the end of June 2025, the company will have approximately 1,858 employees, 50 offices, and more than 2,300 transaction points and general agents nationwide.

Recently, this life insurance company has just announced its 2025 mid-year financial report with not very bright business results.

Accordingly, Dai-ichi Life recorded pre-tax profit in the first 6 months of 2025 reaching nearly VND 1,203 billion and after-tax profit reaching more than VND 966 billion, both down nearly 12% over the same period last year.

Of which, Dai-ichi Life's net revenue from insurance business decreased by 3% to more than VND8,585 billion.

Dai-ichi Life Vietnam's insurance premium revenue reached over VND8,547 billion, down slightly compared to the same period in 2024. Meanwhile, total compensation and insurance benefit payments increased by nearly 6% to VND6,147 billion. As a result, net revenue from insurance business decreased by 3% to over VND8,585 billion. This caused gross profit from the insurance segment to only VND1,842 billion, down 20% compared to the same period.

In terms of revenue structure, universal insurance is still the largest contributor with more than VND4,000 billion, accounting for nearly 50%. However, this segment has decreased by more than VND800 billion compared to the previous year. The two other main contributors include supplementary insurance reaching VND2,584 billion and mixed insurance reaching VND1,141 billion, both of which have seen slight growth.

Profit from insurance sales decreased, while gross profit from Dai-ichi's financial investment activities also decreased.

Financial revenue in the first half of 2025 reached VND1,804 billion, down slightly by 5% over the same period. Although financial expenses were reduced by 15% to more than VND154 billion, gross profit from financial activities still decreased slightly by 4%, reaching only nearly VND1,650 billion.

In the first half of 2025, selling expenses and administrative expenses reached VND1,773 billion and VND514 billion, respectively, down 18% and up 1% over the same period. However, Dai-ichi Life's profits still decreased due to declines in both insurance and financial businesses.

"Pour" more than 14,000 billion VND into corporate bonds

Many insurance companies have recorded a strong shift in financial investment structure and Dai-ichi Life Vietnam Insurance is no exception.

Accordingly, as of June 30, 2025, Dai-ichi Life Vietnam's total assets reached more than VND 79,601 billion, an increase of 6% compared to the beginning of the year. In Dai-ichi Life's investment portfolio structure, long-term investments account for the main proportion, about 4 times higher than short-term investments (including short-term financial investments and cash equivalents).

In short-term investments, Dai-ichi Life mainly deposits money at credit institutions (CIs), with terms of less than 3 months and from 3 to 12 months. Specifically, the company is holding 12,766 billion VND in bank deposits with terms of less than 3 months. At the same time, it spends about 9,582 billion VND on short-term investments, the largest amounts being nearly 3,677 billion VND in securities and 3,000 billion VND in deposits with terms of 3 months to 1 year.

Dai-ichi Life's long-term investments increased sharply in the first 6 months of the year. Source: Dai-ichi Life's interim separate financial statements for the 6-month financial period ending June 30, 2025.

Dai-ichi Life's long-term investments mainly focus on bonds. Specifically, long-term investments account for more than VND46,729 billion, of which VND1,600 billion is long-term bank deposits, 5 times higher than at the beginning of the year. In addition, Dai-ichi Life invested more than VND30,100 billion in government bonds and VND14,865 billion in corporate bonds.

Thus, instead of bank deposits, Dai-ichi Life devotes most of its investment portfolio to government bonds, assets with strong price increases, and partly to bonds of large enterprises.

Source: https://phunuvietnam.vn/bao-hiem-dai-ichi-life-viet-nam-loi-nhuan-sut-giam-rot-hang-chuc-nghin-ty-vao-trai-phieu-20250903131712331.htm