Prudential Vietnam records $327 mln operating profit in 2022

Prudential plc earned a pre-tax operating profit of $327 million from its Vietnam operations in 2022, up 3.15% year-on-year, according to the multinational insurer's annual report.

Prudential Vietnam’s pre-tax operating profits increased gradually through the years, from $199 million in 2018 to $237 million in 2019, $270 million in 2020, and $317 million in 2021.

A company's operating profit is its total earnings from its core business functions, excluding the deduction of interest and taxes.

Meanwhile, the annual premium equivalent of the life insurer moved up in tandem with the operating profit, rising from $195 million in 2018 to $217 million in 2019, $236 million in 2020, $242 million in 2021, and $298 million in 2022.

The report highlighted other optimistic results in the Southeast Asian country, including a market share of 15%, up two percentage points year-on-year, and 1.9 million customers.

The giant also noted that Vietnam has high potential for the insurance sector, given a huge population approaching 100 million, low insurance penetration rate of 1.6%, and average health and protection gap of $1,251.

On a global scale, Prudential recorded an adjusted operating profit of $3.38 billion in 2022, up 4.39% year-on-year. It earned a post-tax profit of $1 billion, down from $2.21 billion a year earlier.

Insurance premiums in Vietnam increased 15.1% year-on-year to VND251.31 trillion ($10.6 billion) in 2022, the Insurance Association of Vietnam reported. The revenue included VND68.20 trillion ($2.88 billion) from non-life insurers, and VND183.11 trillion ($7.72 billion) from life insurers.