Vietnam’s non-life insurers show mixed results in Q1: Report

The market is projected to reach VND79.7t this year.

In the first quarter of 2024 (Q1 2024), Vietnamese non-life insurance companies exhibited mixed performance, with some experiencing significant profit growth while others saw declines, reported state-owned Viet Nam News. 

Several companies reported positive outcomes. Vietnam National Aviation Insurance JSC (AIC) increased its revenue from $17.00m (VNĐ436b) to nearly $19.50m (VNĐ500b), a $2.45m (VNĐ63b) year-on-year rise. AIC's pre-tax and after-tax profits grew by almost 50% compared to Q1 2023, reaching $405,600 (VNĐ10.4b) and $327,600 (VNĐ8.4b), respectively. 

This improvement was attributed to restructuring their investment portfolio, boosting financial revenue and profits. By March 31, 2024, AIC's total assets reached $159.90m (VNĐ4.1t), a 10% increase from the previous year, with short-term debt comprising 99% of total debt, up 10% from the start of the year.

Other prominent companies also experienced profit growth. PVI Holdings (PVI) saw a 40.4% increase in pre-tax profit, reaching over $17.39m (VNĐ446b). Bảo Long Insurance Corporation (BLI) recorded a 41.5% rise in pre-tax profit to $1.69m (VNĐ43.4b). 

BIDV Insurance Corporation (BIC) achieved nearly $5.77m (VNĐ148b) in pre-tax profit, a 49% increase driven by a 23.3% rise in insurance business revenue and a 50.6% rise in financial activity revenue.

Conversely, some companies saw profit declines. Vietnam National Reinsurance Corporation (VNR) experienced the most significant drop, with a 25.3% decrease in pre-tax profit to over $6.90m (VNĐ177b). 

Despite a 7.8% increase in net revenue from insurance, high operating costs and limited financial activity support reduced profitability. 

Agriculture Bank Insurance Joint Stock Corporation (ABI) and Bảo Minh Insurance Corporation (BMI) reported slight pre-tax profit decreases of 2.2% and 1%, respectively, due to rising expenses outpacing revenue growth.

FiinProX statistics indicate that as of early May 2024, profits for insurance businesses increased by 21.1%. 

Mirae Asset Vietnam Securities (MASVN) noted that insurance industry stocks, known for stable and consistent growth, are considered relatively safe investments. 

In 2024, the insurance industry is expected to contribute $33.16b (VNĐ850.3t) in investment capital, an 11.51% increase. Total insurance premium revenue is projected to reach $9.50b (VNĐ243.5t), with non-life insurance at $3.11b (VNĐ79.7t) (up 12%) and life insurance at $6.39b (VNĐ163.8t) (up 5%).

($1.00 = VNĐ25,410.00)