Insurer Manulife Vietnam reports $206 mln loss after tax in 2021

By An Le
Mon, May 16, 2022 | 4:20 pm GMT+7
Headquarters of Manulife Vietnam in Ho Chi Minh City. Photo courtesy of the insurer.

Headquarters of Manulife Vietnam in Ho Chi Minh City. Photo courtesy of the insurer.

Despite rising net premium, life insurer Manulife Vietnam recorded a loss after tax of VND4,741 billion ($206.5 million) in 2021, 2.9 times higher than its 2020 loss.

Net revenue from insurance business activities reached nearly $1.05 billion, up 22.6% from 2020, according to the company’s 2021 financial report.

Revenue from financial activities rose by 8.5%, reaching $220.8 million. Of which, $102.7 million and $58.9 million were from bond investment and stock trading, up 20.8% and 621%, respectively. Due to a 65.7% jump in financial expenses, profit from this segment only grew by 2% to $158.6 million.

In 2021, the total cost of insurance business activities jumped by 41% to $1.21 billion. Of this, compensation and insurance payments cost $1.06 billion, while other expenses exceeded $151.7 million.

Given the impacts of Covid-19, insurance companies have been under intense pressure to pay for hospitals, medical services, and insurance obligations for clients.

The insurer's short-term and long-term investments both increased by around 37%, reaching more than $628.4 million and $2.34 billion respectively. Of which, the former focused on stocks while the latter engaged in various kinds of bonds.

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By the end of 2021, Manulife Vietnam's total assets reached $4.05 billion, up 50% from the year’s beginning.

The enterprise has increased its chartered capital from $570.5 million to $968 million, becoming Vietnam’s largest insurance company by chartered capital, surpassing FWD Vietnam Life Insurance Co., Ltd.

Due to the 2021’s losses, the insurer's equity declined to VND14,385 billion ($626.7 million).

Despite a steady growth rate over the 2015-2021 period, Manulife Vietnam only reported positive profits in 2016 and 2019, reaching $16.2 million and $44.9 million respectively. In other years, the company reported a loss after tax of $13.6-206.5 million.

Manulife is the first foreign-invested life insurer in Vietnam.

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