Life insurer FWD Vietnam posts cumulative loss of $232.5 mln after 17-year operation

FWD Vietnam Life Insurance Company Limited, a member of Hong Kong-headquartered FWD Group, recorded a cumulative loss of VND5,815 billion ($232.45 million) as of June 30, after being present in the Southeast Asian country for 17 years.

The amount improved from a negative VND6,091 billion ($243.5 million) as of end-2023 and VND6,926 billion as of end-2022, according to its mid-year financial statement.

In H1/2024, the life insurer earned a net profit of VND290.75 billion ($11.62 million), rising 70% year-on-year.

In the six-month period, its revenue from insurance premiums fell 22% year-on-year to VND1,960.5 billion ($78.37 million). Costs of insurance business edged up 4% to VND1,155 billion. As such, gross profit from its main business was VND805 billion, down 43.2%.

Financial revenue rose 18.6% to VND423.5 billion, including VND275.4 billion from interest on bank deposits and VND77 billion from income from bond investments.

Sales costs dropped 42.3% year-on-year to VND661.55 billion ($26.44 million), contributing to the firm’s earnings growth.

Among the long-term investments as of June 30, fixed bank deposits jumped 83.8% from end-2023 to VND6,132 billion ($245.11 million). In addition, it had VND814.3 billion invested in government and government-backed bonds and VND1,740 billion in corporate bonds.

FWD Vietnam Life Insurance had total assets of VND20,441 billion ($817 billion) as of June 30, up 4.5% from end-2023.

Its liabilities rose 1.5% to VND7,096 billion ($283.64 million). Its owner’s equity edged up 2.2% to VND13,345 billion, including VND19,102 billion in charter capital.

FWD entered Vietnam's market in June 2016 through the acquisition of Great Eastern Life (Vietnam) Company Limited. This was the second of three new market entry announcements that year.