Insurance premium revenue in many places has not yet recovered - Photo: QUANG DINH
The life insurance industry’s business picture is highly divergent. Some places will see profits increase again in 2024, while others will continue to decline or extend losses.
On the positive side, in many places, although insurance premium revenue has decreased, businesses have still increased wages and other costs for employees.
Most companies reduce staff after 1 year - Data: Financial statements
Big loss, staff expenses still increase by double digits
The recently released 2024 financial report extends the loss streak of Sun Life Vietnam Insurance Company Limited.
According to the report, Sun Life Vietnam's 2024 insurance premium revenue was more than VND3,399 billion, down nearly 19% compared to 2023. Compensation and insurance payments were VND483 billion, also down more than 31%.
However, the original insurance reserve increased from VND590 billion in 2023 to VND1,218 billion last year, equivalent to a doubling.
While revenue decreased, total insurance business operating expenses did not decrease, climbing to VND1,999 billion. Sun Life Vietnam's gross profit in insurance business therefore decreased by 40%, to VND1,295 billion.
Not to mention, the cost of business management in this period also tends to increase. In return, the financial revenue of this business is better, accompanied by a sharp decrease in selling costs.
In the sales cost structure, the most expensive item of this insurance company is the bonus to support agents with 943 billion VND, down 44% compared to last year.
In the business management cost section, the "heaviest" item is salary and other expenses for employees at 421 billion VND, an increase of 18%.
Data: Financial statements
At the end of 2024, Sun Life Vietnam had 590 employees, an increase of 27 people after one year. Thus, it is estimated that last year the company paid an average of nearly 60 million VND/person/month in salary and other expenses for each employee.
Finally, Sun Life Vietnam's after-tax loss was VND868 billion, while it was VND921 billion in 2023. Although this is the lowest loss in 4 years, negative net profit for many consecutive years has caused Sun Life Vietnam to record a total accumulated loss of up to VND6,364 billion.
Despite continuous losses, the financial capacity of this company shown in the report is still at a guaranteed level, when short-term debt decreased sharply, to 1,125 billion VND at the end of 2024, significantly lower than nearly 3,960 billion VND of short-term assets.
Profits plummet, average employee income still increases
Not to the point of loss, but 2024 is not a very "happy" year for AIA Life Insurance Company (Vietnam) Limited when profits decreased sharply.
Last year, AIA Vietnam recorded insurance revenue of VND14,778 billion, down more than 6% compared to 2023. Meanwhile, total insurance business operating expenses were VND12,700 billion, up nearly 5%.
Notably, AIA Vietnam's gross profit last year was only VND1,485 billion, down 50%. Therefore, despite recording a bright spot when sales and business management costs both decreased, after-tax profit was still only over VND70 billion, "evaporating" 95% compared to 2023.
Along with the decline in business results, this life insurance company also reduced nearly 130 employees after one year, leaving 790 people as of December 31, 2024.
Despite a significant decrease in the number of employees, last year AIA Vietnam still spent more than VND957 billion on employee costs, a decrease of nearly 3% compared to 2023.
It is estimated that AIA Vietnam has paid an average of VND1.21 billion in income and other expenses per employee per year, equivalent to nearly VND101 million per month. Previously in 2023, this figure was about VND89 million.
What should be noted about calculating salary and average cost per employee?
Manulife Vietnam is among the few businesses reporting a 2024 after-tax profit of VND3,334 billion, up 2% compared to 2023. However, the report shows that the company's number of employees still decreased by 156 people after one year, to 997 people at the end of 2024.
Last year, Manulife Vietnam recorded expenses for salaries, bonuses and other benefits for employees of more than VND 1,314 billion, a decrease of VND 42 billion compared to 2023. Thus, if we estimate the average cost for each employee per month at Manulife is more than VND 109 million/month.
It should be noted that the calculation of average salary and other expenses mentioned above is only relative, based on the number of employees and expenses stated in the financial report.
The cost of salaries and other benefits at each insurance company may actually include both full-time employees and temporary or outsourced employees…
In addition to base salary, this cost also includes union dues, social insurance, health insurance, unemployment insurance, employee engagement programs and other benefits that may vary from company to company.
The actual income level at each insurance company will depend on the job position, seniority, productivity... of each employee, not "equal".
With the characteristics of the insurance industry, the difference will be significant for each employee when work performance, revenue, etc. are different. The average number is to evaluate the general trend of compensation payment, not for each individual.
Source: https://tuoitre.vn/cong-ty-bao-hiem-nao-chi-cho-nhan-vien-binh-quan-ca-tram-trieu-moi-nguoi-thang-20250418193310988.htm
![[Photo] The Government Standing Committee works with ministries and branches on the real estate market situation.](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/24/e9b5bc2313d14c9499b8c9b83226adba)
![[Photo] Ho Chi Minh City holds funeral for former President Tran Duc Luong](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/24/9c1858ebd3d04170b6cef2e6bcb2019e)
Comment (0)