Nearly all life insurers in Vietnam have released their 2024 financial reports, except for MB Ageas. 

Of these, 10 companies saw profits drop from 2023, including AIA, FWD, Prudential, Generali, Chubb Life, Fubon Life, Manulife, Sun Life, Mirae Asset Prévoir, and Hanwha Life.

Three insurers, namely Sun Life, Fubon Life, and PhuHung Life, reported negative profits.

The main cause behind the industry’s poor performance was a decline in insurance premium revenue.

Even Bao Viet Life reported a 1.05 percent decline in net revenue from insurance business activities to VND32 trillion. However, it saw VND1.851 trillion in pre-tax profit, up 34 percent from 2023, becoming the most profitable company in the industry.

Notably, AIA’s profit plummeted 75 percent to VND418 trillion, dropping to ninth in the 2024 profit rankings. Its net insurance revenue fell 6 percent to over VND14 trillion, and net operating profit dropped 56 percent to VND724 trillion.

Leading the market in pre-tax profit was Manulife, with VND4.082 trillion, down 1.42 percent from 2023.

Prudential ranked second, with VND3.339 trillion in pre-tax profit, down 12 percent.

Dai-ichi Life took third, with VND2.670 trillion in pre-tax profit, up 10 percent.

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

The remaining businesses all had profits of less than VND1,000 billion or suffered losses.

Among loss-making firms, Sun Life Vietnam took another loss of VND868 trillion in 2024, pushing its accumulated losses to VND6.365 trillion. The insurer has posted negative profits for years since PVI withdrew from the PVI-Sun Life joint venture.

Its net insurance revenue reached VND3.294 trillion in 2024, down 20 percent.

Fubon Life’s 2024 pre-tax profit was VND7.053 trillion, down 117 percent from 2023.

Its key indicators fell sharply: net insurance revenue was VND104 trillion, down 22 percent; financial revenue was VND102 trillion, down 51 percent; and other income was VND71 million, down 30 percent.

The positive sign was the decrease in major expenses, including insurance operation costs, financial costs, and management costs.

Phu Hung Life was also found in the loss-making list, with a 2024 pre-tax loss of VND236 trillion (down from VND517 trillion in 2023).

Its 2024 premium revenue fell 43 percent to VND511 trillion.

The 2022 life insurance crisis lingered into 2024. New regulations of the Insurance Business Law and Credit Institutions Law have been brought into life, which prohibits insurers from forcing their borrowers to buy life insurance policies.

In this context, insurers face fierce competition, which has forced them to invest more in technology for business operations.

Tuan Nguyen