Life insurer Generali Vietnam's net profit sinks 74% in H1

Life insurer Generali Vietnam, a member of Italy’s largest insurance group Generali, booked a net profit of VND116.71 billion ($4.68 million) in the first half of this year, plunging 74% year-on-year.

Revenue from insurance premiums slid 16.3% year-on-year to VND1,472 billion ($59 million) in H1, the company’s mid-year financial statement shows.

The insurer posted VND485.87 million ($19.48 million) in financial revenue in the six-month period, up 18% year-on-year.

Its operating costs for insurance activities rose 10.66% year-on-year to VND1,163 billion ($46.63 million). Sales and management costs remained little changed at VND443.55 billion and VND219.6 billion, respectively.

In Q2, the life insurer made a net profit of VND78.64 billion ($3.15 million) on net revenue of VND921.3 billion, down 79% and 14.3% year-on-year, respectively.

The company, with a charter capital of VND7,202.6 billion ($281.5 million at the current exchange rate), had a cumulative loss of VND3,035.3 billion ($121.74 million) as of end-June 2024.

As of June 30, the company had total assets of VND17,572.82 billion ($704.6 million), up 5.2% from end-2023. Its long-term financial investment dropped 19.9% to VND7,653.6 billion, mostly in government and secured corporate bonds.

Its total liabilities increased 5.9% from end-2023 to VND13,324 billion ($534.2 million), 3.13 times its owner’s equity.