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.
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.