List of insurance companies doing poorly, some losing more than 6,300 billion VND

Insurance premium revenue declines

As of April 15, most life insurance businesses in Vietnam have announced their 2024 financial reports, except for MB Ageas Insurance Company.

Among them, 10 businesses recorded a decrease in profits compared to 2023, including: AIA, FWD, Prudential , Generali, Chubb Life, Fubon Life, Manulife, Sun Life, Mirae Asset Prévoir and Hanwha Life.

There are even 3 insurance companies that recorded negative profits: Sun Life, Fubon Life and Phu Hung Life.

The main reason for the poor business results of the life insurance industry last year was the decline in insurance premium revenue.

Even for businesses with huge profits like Bao Viet Life, net revenue from insurance business activities also decreased slightly by 1.05%, reaching more than 32,000 billion VND.

As a result, the "giant" of the Vietnamese insurance industry achieved VND 1,851 billion in pre-tax profit, an increase of 34% compared to 2023. This result made Bao Viet Life the life insurance company with the highest profit growth in the industry.

Notably, AIA Insurance's profit dropped by 75% compared to the previous year, to only VND418 billion. This result pulled AIA down to 9th place in the profit ranking of life insurance companies in 2024. Of which, AIA's net revenue from insurance business activities decreased by 6%, to more than VND14,000 billion; net profit from business activities decreased by 56%, to VND724 billion.

However, the market leader in terms of pre-tax profit in 2024 is Manulife.

With VND 4,082 billion, Manulife Vietnam's pre-tax profit decreased by 1.42% compared to 2023 business results.

Ranked second in terms of highest profit, Prudential Vietnam achieved VND3,339 billion in pre-tax profit, down 12% year-on-year.

Ranking third in absolute terms, Dai-ichi Life Vietnam achieved VND2,670 billion in pre-tax profit, up 10% over the same period.

Bao Viet Life and Cathay Life shared the remaining two positions in the Top 5, with profits of VND1,851 billion (up 34%) and VND1,827 billion (up 8.64%) respectively.

The remaining businesses all had profits of less than 1,000 billion VND or were at a loss.

Enterprises accumulated losses of thousands of billions of dong

Regarding loss-making businesses last year, Sun Life Vietnam continued to lose VND868 billion, leading to accumulated losses of up to VND6,365 billion. Thus, Sun Life Vietnam has recorded negative profits for many consecutive years since PVI withdrew capital from the PVI - Sun Life joint venture.

During the year, Sun Life's net revenue from insurance business reached VND3,294 billion, down 20% over the same period.

For Fubon Life, the company's pre-tax profit in 2024 is negative VND 7,053 billion, down 117% compared to 2023.

Fubon's key indicators all decreased sharply compared to the previous year. Net revenue from insurance business reached VND104 billion, down 22%; revenue from financial activities reached VND102 billion, down 51%; other income reached only VND71 million, down 30%.

The positive point is that key costs, such as insurance business operating costs, financial costs, and business management costs, all decreased significantly compared to the same period.

Phu Hung Life is also on the list of life insurance companies with negative profits. The company's pre-tax profit in 2024 is negative VND236 billion (negative VND517 billion in 2023).

According to the report, Phu Hung's insurance premium revenue in 2024 decreased by 43%, to only 511 billion VND.

In 2024, the “aftershocks” of the life insurance crisis from 2022 have not yet ended. In addition, many regulations of the Law on Insurance Business and the Law on Credit Institutions have been officially implemented, including regulations prohibiting banks from forcing borrowers to buy life insurance.

In that context, businesses will have to compete more fiercely, so they will also invest more in applying technology to insurance business activities.

PROFIT BEFORE TAX IN 2024 OF INSURANCE COMPANIES
STT	BUSINESS	Profit after tax (VND billion)	% CHANGE
1	Manulife	4,023	-1.42%
2	Prudential	3,339	-12.28%
3	Dai-ichi Life	2,670	10%
4	Bao Viet Life	1,851	34%
5	Cathay Life	1,828	8.65%
6	FWD	772	-12%
7	Hanwha Life	710	-29.22%
8	MVI Life	662,718	21%
9	AIA	418	-75%
10	Generali	185	-80%
11	BIDV Met Life	152	29.37%
12	Chubb Life	105	-88.28%
13	Mirae Asset Prevoir	99,498	-67.19%
14	Fubon Life	-7	-117.82%
15	Phu Hung Life	-236	-54.27%
16	Sun Life	-868	7.49%