How is the life insurance market divided?

Top 5 major life insurance companies

According to the Vietnam Insurance Association (IAV), as of the end of 2022, the top 5 leading companies in terms of market share for life insurance in Vietnam were: Bao Viet, Prudential, Manulife, Dai-ichi Life, and AIA.

According to IAV, these five companies account for approximately 76% of the life insurance market share in Vietnam. Meanwhile, FWD Insurance, despite partnering with two major banks, Vietcombank and Agribank, in bancassurance distribution, is not among the top five companies in terms of market share.

Bao Viet is the only domestic company in the market-leading group. In its most recent announcement two years ago, Bao Viet stated that it held approximately 24% of the domestic insurance market share.

However, this ratio may have changed due to the growing rise of foreign competitors. These are all major global players who are actively collaborating with Vietnamese banks through cross-selling of products.

The insurance companies hold the leading market share.

Insurance premium revenue distributed through the bancassurance channel currently accounts for approximately 40% of the total new business revenue of insurance companies.

Specifically, Prudential has simultaneous partnerships with seven banks in insurance distribution, including: Standard Chartered Bank, MSB, PVComBank, VIB, UOB, Shinhan Bank, and SeABank.

Manulife, the company that has been making the most noise lately, is also aggressively expanding its reach by partnering with over 60,000 agents and collaborating with three banks: Techcombank, VietinBank, and SCB.

Meanwhile, Dai-ichi Life, a company from Japan, is collaborating with Sacombank, Eximbank, ACB, and LienVietPostBank.

AIA is also collaborating with banking partners in insurance distribution, including VPBank, VietCapital Bank, KienLongBank, HSBC, and Public Bank.

Which company achieved the highest profit?

Regarding business results in 2022, Prudential Vietnam was the insurance company with the highest after-tax profit among the five companies mentioned above.

Prudential's after-tax profit in 2022 surged 670% to VND 3,636 billion, despite a 11% decrease in net revenue from insurance business operations, reaching VND 34,610 billion.

This result is mainly due to the high increase in bank interest rates over the past year, especially in the second half of the year.

Dai-ichi Life Vietnam ranked second in after-tax profit, reaching VND 2,646 billion, a 5% decrease compared to 2021. The company achieved VND 21,825 billion in premium revenue, a 17% increase compared to 2021. Total claims and insurance payouts were also the highest, reaching VND 10,267 billion, a 25% increase compared to 2021.

For Manulife Vietnam, although claims payouts increased by 36% compared to 2021, reaching approximately VND 7,000 billion, thanks to a 9.5% increase in premium revenue to VND 26,835 billion, along with higher bank deposit interest rates, after-tax profit in 2022 reached VND 2,562 billion. This figure is extremely impressive considering the company had previously recorded a net loss of VND 4,700 billion in 2021.

Meanwhile, AIA Vietnam achieved VND 18,490 billion in premium revenue, a 12% increase compared to 2021. Total insurance claims paid amounted to VND 11,345 billion (compared to VND 10,489 billion in 2021). Net profit after tax reached VND 1,110 billion, a 24% increase year-on-year.

Surprisingly, despite leading the insurance market in terms of market share and highest life insurance premium revenue, Bao Viet Life Insurance ranked last among the top 5 companies in terms of after-tax profit.

In 2022, Bao Viet Life Insurance achieved total life insurance premium revenue of VND 41,677 billion, a growth of 10.1%. After-tax profit reached VND 975 billion, a 10% increase compared to 2021.