The Vietnamese life insurance industry faced significant challenges in 2024, with nearly all major insurers releasing their financial reports except for MB Ageas. Out of these, 10 companies experienced a decline in profits compared to 2023. The struggling companies included AIA, FWD, Prudential, Generali, Chubb Life, Fubon Life, Manulife, Sun Life, Mirae Asset Prévoir, and Hanwha Life. Three insurers – Sun Life, Fubon Life, and PhuHung Life – reported negative profits for the year.
Decline in Insurance Premium Revenue
The primary reason behind the industry’s poor performance was a decline in insurance premium revenue. Even major players like Bao Viet Life saw a 1.05% decrease in net revenue from insurance business activities, amounting to VND32 trillion. However, the company managed to achieve a pre-tax profit of VND1.851 trillion, marking a 34% increase from 2023, making it the most profitable company in the industry.
Top Performers
Manulife led the market in pre-tax profit with VND4.082 trillion, despite a 1.42% decline from 2023. Prudential ranked second with VND3.339 trillion in pre-tax profit, down 12%. Dai-ichi Life secured third place with VND2.670 trillion in pre-tax profit, showing a 10% increase. Bao Viet Life and Cathay Life rounded out the top five with profits of VND1,851 billion (up 34%) and VND1,827 billion (up 8.64%), respectively.
Challenges and Losses
Several insurers faced significant challenges. AIA’s profit plummeted 75% to VND418 trillion, dropping to ninth in the 2024 profit rankings. Sun Life Vietnam reported another loss of VND868 trillion in 2024, pushing its accumulated losses to VND6.365 trillion since PVI withdrew from the PVI-Sun Life joint venture. Fubon Life’s pre-tax profit was VND7.053 trillion, down 117% from 2023, primarily due to a 22% drop in net insurance revenue and a 51% decrease in financial revenue. Phu Hung Life also reported a pre-tax loss of VND236 trillion in 2024.
Industry Outlook
The lingering effects of the 2022 life insurance crisis and new regulations from the Insurance Business Law and Credit Institutions Law, which prohibit insurers from forcing borrowers to purchase life insurance policies, have intensified competition. In response, insurers have been compelled to invest more in technology to remain competitive.
