Life insurers in Vietnam once again reported losses in 2018 despite ballooning revenue, continuing an alarming trend for their bottom line. While revenues continued to increase strongly, life insurers were hit hard by the fluctuations in government bonds, Photo: Le Toan According to the latest statistics from the Ministry of Finance (MoF), that 10 out of 18 life insurers in Vietnam made a loss in 2018, mostly due to high provision costs. This is the fourth consecutive year that life insurers stayed in the red in spite of booming revenues. In fact, in 2018, their proceeds in 2018 grew by 30 per cent, but the total after-tax loss was close to VND3 trillion ($130.4 million), while provisions reached VND20.26 trillion ($880.9 million), up 30 per cent on-year. The MoF explained that falling interest rates for Vietnamese government bonds were also to blame. The vast majority of life insurers in Vietnam invest in government bonds, and fluctuations in these rates can dramatically … [Read more...] about Improving life insurers’ bottom line
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Non-life insurance companies in Vietnam open doors for more investments
Domestic non-life insurance companies expect the additional investment capital will help them expand distribution networks and enlarge market shares in the prosperous but competitive market. Bao Minh Insurance Corporation gets investments from France’s AXA Insurance Bao Long Insurance Corporation has so far approved a plan to increase capital through share issue, with priority for foreign investors. Accordingly, the company’s capital will increase from the current VND600 billion (US$25.53 million) to VND1 trillion (US$42.55 million). Currently, Saigon Commercial Bank and Eximbank are two large shareholders of Bao Long, holding 81.1 percent and 6.51 percent of the insurer’s charter capital, respectively. Shareholders of AAA Assurance Corporation have also planned to issue shares valued at VND310 billion (US$13.19 million) for capital hike after getting a nod from the Ministry of Finance. AAA’s board of directors expected the issue will be implemented this year. … [Read more...] about Non-life insurance companies in Vietnam open doors for more investments
Life insurance sector pumps over 215 trillion VND in economy in H1
Illustrative image (Source: Bao Viet) HCM City (VNA) – The life insurance sector pumped over 215 trillion VND (9.34 billion USD) into the economy in the first half of this year, according to the Insurance Association of Vietnam (IAV). Vietnam is now home to 18 life insurers with an annual revenue growth of over 30 percent, providing insurance coverage for more than 7.5 million clients. They pay in excess of 14 trillion VND in insurance entitlements for clients each year and create jobs for nearly 10,000 workers and more than 600,000 agents. The birth of the Law on Insurance Business on December 7, 2000 has created a legal corridor for the insurance sector over the past years, said the IAV. From 2011-2017, the sector’s reinvestment in the economy expanded by 17.7 percent each year. In 2017 alone, investment made by insurers amounted to roughly 251 trillion VND, up 27 percent year-on-year. Le Huong Ly, member of the IAV Executive Board, said insurers need to … [Read more...] about Life insurance sector pumps over 215 trillion VND in economy in H1
Hanwha Life to boost charter capital
A Hanwha Life Insurance office in HCM City. The company plans to increase its charter capital from VNĐ1.89 trillion to VNĐ4.89 trillion. — VNS Photo Viet Nam News HCM CITY — South Korea’s Hanwha Life Insurance Company (Vietnam) on Wednesday announced plans to increase its charter capital by VNĐ3 trillion (US$131 million) to VNĐ4.89 trillion ($214 million), becoming one of the largest life insurers in the country. The Ministry of Finance has given approval. The company said the capital injection strongly demonstrated its long-term commitment to the Vietnamese market and would provide a solid financial foundation for its development efforts. Back Jong Kook, the company’s CEO and chairman, said financial strength is an important criterion for every life insurance company. Founded in 2009, Hanwha Vietnam has achieved impressive growth. In the last five years its new premium revenue growth has averaged 41 per cent, 10 percentage points … [Read more...] about Hanwha Life to boost charter capital
Hanwha Life Vietnam increase chartered capital
With new capital injection, Hanwha Life Vietnam has listed among the largest life insurance companies in the local market in term of chartered capital. Capital injection has strongly demonstrated to Hanwha Life Vietnam's long-term commitment in Vietnam market as well as a solid financial foundation that will help boost its investment and development services with an aim to serve our customers better and better. Mr Back Jong Kook, CEO cum Chairman of Member Council said that strong financial resources are an important criterion for every life insurance companies to become reliable financial foundation that helps customers to face with every risk in life. The increase in capital confirmed the long-term investment commitment of Hanwha Group and Hanwha Life in the Vietnam market. At the same time, it brings better quality of customer service to Hanwha Life’s customers. Founded in 2009, Hanwha Life Vietnam has quickly risen to the group of impressive growth in the insurance industry. … [Read more...] about Hanwha Life Vietnam increase chartered capital
Hanwha Life Vietnam increases charter capital to $233 million
Increasing the charter capital of Hanwha Life Vietnam will help strengthen its investment commitment and come along with Vietnam in the long term, while simultaneously making the company one of the largest life insurers by charter capital. The office of Hanwha Life Vietnam in Ho Chi Minh City On July 10, Hanwha Life Vietnam Insurance Co., Ltd. was approved by the Ministry of Finance to increase charter capital through Licence No.51/GPDC6/KDBH. Under the new licence, Hanwha Life’s charter capital increased from $103 to $233 million. Back Jong Kook, CEO cum chairman of Hanwha Life Vietnam’s member council, said that having strong financial resources is an important criterion for life insurance companies to help customers face every risk in life. The increase in capital confirmed the long-term investment commitment of Hanwha Group and Hanwha Life in Vietnam. At the same time, it brings better quality customer services. Founded in 2009, Hanwha Life Vietnam has grown … [Read more...] about Hanwha Life Vietnam increases charter capital to $233 million
VIB reports over 200 per cent swell in half year profit
Vietnam International Bank (UPCoM: VIB) has released its unaudited financial statement for the first half of 2018 with positive performance in key indicators of pre-tax profit, total deposits, and lending as well as non-performing loans (NPL). Accordingly, VIB reported VND1.151 trillion ($51.15 million) in pre-tax profit in the first six months of the year, up 216 per cent on-year. Net revenue increased by 56 per cent to VND2.701 trillion ($120.04 million), while operating expenses picked up by some 16 per cent to VND1.316 billion ($58.48 million) on-year. Credit loss provisions were kept at a low level of VND234 billion ($10.4 million) at the end of the period. Lending and deposits reached VND91.7 trillion ($4.075 billion) and VND83.168 trillion ($3.69 billion), advancing by 8.94 and 7.1 per cent on-year. The Hanoi-based lender was also able to manage its other financial ratios, including the ratio of short-term deposits used for long-term loans at 40.7 per cent … [Read more...] about VIB reports over 200 per cent swell in half year profit
Firms are teaming up to excel in insurance world
Firms are teaming up to excel in insurance world The firm’s CEO Khamsaya Soukhavong spoke to VIR about the company’s vision to grow sustainably in the Vietnamese market. Could you tell us about the development strategy of Mirae Asset Prévoir? Khamsaya Soukhavong Vietnam’s economy achieved a high growth rate and generally stable macro-economic environment in 2017. The insurance market has itself maintained a high growth rate of around 20 per cent with great potential to develop, as Vietnamese people have increasingly better incomes and a growing awareness of the necessity of insurance. Given these circumstances, Mirae Asset Prévoir (formerly known as Prévoir Vietnam) aims to increase its investment in key resources like professionals, technology, distribution, products, and services, to capture the growth opportunities of the market and anticipate its needs as well as those of the target customers. Shopping behaviours of consumers have been … [Read more...] about Firms are teaming up to excel in insurance world
Hanwha Life Vietnam teams up with Movin to start telemarketing
Back Jong Kook ( second from right), CEO cum chairman of the member council of Hanwha Life Vietnam, shook hands with the representatives of Movin Company Limited Specifically, Movin would deliver Hanwha Life Vietnam’s insurance products to its clients through its professional telemarketing distribution routes in Vietnam as a new business partner of the Korea-invested company. Addressing the signing ceremony, Back Jong Kook, CEO and chairman of the member council of Hanwha Life Vietnam, stated: “The strategic partnership between Hanwha Life Vietnam and Movin will help unlock the full potential and the strengths of the two parties, thus enhancing the competitive edge of us both." Additionally, the strategic partnership was expected to set up a comprehensive and inclusive distribution channel for financial services as well as assist Hanwha Life Vietnam in diversifying and expanding its distribution base in addition to existing channels, such as bancassurance and … [Read more...] about Hanwha Life Vietnam teams up with Movin to start telemarketing
Sun Life Vietnam launches new guaranteed payout policy
Specifically, apart from the guaranteed annual payout, the new savings and protection plan could offer a wide range of insurance products such as appealing payment at maturity, long-term protection with limited pay, and an optional “waiver of premium” benefit against critical illness from the early stage.Additionally, with the purpose of enhancing clients’ living quality, the new insurance plan allows clients to receive a guaranteed annual payout from the end of the premium term until the maturity date.Speaking about the firm’s prominent insurance plans, Larry Madge, chief executive officer of Sun Life Vietnam, noted: “The firm’s product strategy is simply to support clients in obtaining lifetime financial security. As a result, we (Sun Life Vietnam) strongly focused on clients and their needs in order to offer the most suitable products and services.”Regarding the guaranteed annual payout, clients would receive a notable lump sum payment at … [Read more...] about Sun Life Vietnam launches new guaranteed payout policy