Vietnam H1 profits down for Prudential, Dai-ichi Life, up for AIA

Foreign-invested life insurers in Vietnam have posted contrasting H1 post-tax profit figures, with that of Prudential down 40.5%, Dai-ichi Life's down 2.2%, and AIA’s up 19.2% year-on-year.

Prudential Vietnam

UK-invested Prudential Vietnam recorded a post-tax profit of VND1.34 trillion ($55.4 million) in the first six months of this year, down 40.5% year-on-year, according to the firm’s financial statements.

In H1, the firm earned revenues of VND12.64 trillion ($521.7 million) from insurance business, down 8.3% year-on-year; VND5.56 trillion ($229.5 million) from financial activities, up 2.4%; and VND12.1 billion ($0.5 million) from other activities, up 1.6%.

In particular, the firm’s insurance premiums reached VND12.93 trillion ($533.7 million), down 7.7% year-on-year; while it had to pay VND11.23 trillion ($463.4 million) for insurance indemnification, up 60.7%.

As of end-June 2023, Prudential Vietnam’s total assets inched up 3.9% from end-2022 to VND168.03 trillion ($6.9 billion); while its equity grew 6.9% to VND20.71 trillion ($854.5 million) and its liability increased 3.5% to VND147.32 trillion ($6 billion).

Prudential opened its first Vietnam representative office in Hanoi in 1995. The insurer expanded its bancassurance network to eight banks in 2019 and now operates over 360 agencies in all 63 provinces and cities of Vietnam.

AIA Vietnam

AIA Vietnam, under Hong Kong-based insurer AIA, recorded a post-tax profit of VND886.7 billion ($36.6 million) in January-June, up 19.2% year-on-year.

In the six-month period, AIA Vietnam earned revenues of VND7.57 trillion ($312.6 million) from insurance business, down 12.6% year-on-year; VND1.59 trillion ($65.7 million) from financial activities, up 32.4%; and VND9 billion ($0.4 million) from other activities, down 28.1%.

The firm’s total insurance premiums reached VND7.92 trillion ($326.8 million) in the period, down 12.1% year-on-year; while it had to pay VND5.27 trillion ($217.7 million) for insurance indemnification, down 0.4%.

As of end June 2023, AIA Vietnam’s total assets went up 5.3% from end-2022 to VND56.97 trillion ($2.4 billion); while its equity increased 6.4% to VND14.65 trillion ($604 million) and its liability grew 4.9% to VND42.32 trillion ($1.7 billion).

Launched in Vietnam in 2000, AIA now provides services to over 1.5 million Vietnam people. Its network features over 200 agencies in more than 50 provinces and cities, and six banks in its bancassurance system.

Dai-ichi Life Vietnam

Dai-ichi Life Vietnam, the Vietnamese subsidiary of Japan’s largest life insurer Dai-ichi Life, recorded a post-tax profit of VND1.28 trillion ($53.4 million) in H1, down 2.2% year-on-year, its financial statements show.

The insurer earned net revenues of VND9.44 trillion ($395.9 million) from insurance business, down 7.1% year-on-year; VND1.77 trillion ($74.3 million) from financial activities, up 49.8%; and VND2.1 billion ($88,070) from other activities, down 8.8%.

As of June 30, Dai-ichi Life Vietnam’s total assets reached VND62.37 trillion ($2.62 billion), up 7.5% from that on January 1. The insurer’s liability was VND42.93 trillion ($1.8 billion) and equity VND19.44 btrillion ($815.1 million), up 7.7% and 7% after six months, respectively.

Established in January 2007, Dai-ichi Life Vietnam now operates about 300 offices and agencies across the Southeast Asian nation, with over 2,000 staff and 114,000 financial consultants. Dai-ichi Life Vietnam’s business network is the third biggest in the sector in Vietnam, the insurer said.

According to the Insurance Association of Vietnam, Vietnamese life insurer Baoviet Life topped the nation in terms of insurance premiums in H1 of this year, followed by Manulife, Prudential, Dai-ichi Life and AIA.

Baoviet Life and Manulife, meanwhile, do not release half-year figures, only full-year results.