How is life insurance market divided?
Despite continuously expanding in the market through cooperation with more than 60,000 agents and linking with 3 banks SCB, Techcombank, VietinBank, Manulife Vietnam is still behind the two "giants" of the life insurance market.
Top 5 "giants" of life insurance
According to the Insurance Association of Vietnam (IAV), by the end of 2022, the top 5 enterprises leading in market share of life insurance in the Vietnamese market are: Bao Viet, Prudential, Manulife, Dai-ichi Life, and AIA.
According to IAV, the above 5 enterprises account for about 76% of the life insurance market share in Vietnam. Meanwhile, FWD Insurance, although joining hands with two banking giants, Vietcombank and Agribank, in distributing insurance through banks (bancassurance), is not in the group of 5 leading enterprises in terms of insurance market share.
Bao Viet is the only domestic company in the market leading group. In its most recent announcement two years ago, Bao Viet said it held about 24% of the domestic insurance market share.
However, this ratio may have changed due to the growing rise of foreign competitors. These are all big names in the world and are actively cooperating with Vietnamese banks through product cross-selling channels.
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Insurance companies with the largest market share. |
Premium revenue distributed through banking cooperation channels currently accounts for about 40% of total new exploitation revenue of insurance companies.
In particular, Prudential has a cooperative relationship with 7 banks at the same time in insurance distribution, including: Standard Chartered Bank, MSB, PVComBank, VIB, UOB, Shinhan Bank and SeABank.
Manulife, the most controversial business recently, has also tried to "expand" through cooperation with more than 60,000 agents and joined hands with 3 banks including Techcombank, VietinBank and SCB.
Meanwhile, Japanese company Dai-ichi life is cooperating with Sacombank, Eximbank, ACB, and LienVietPostBank.
AIA is also cooperating with banking partners in insurance distribution, including: VPBank, VietCapital Bank, KienLongBank, HSBC, and Public Bank.
Which business is the most profitable?
Regarding business results in 2022, Prudential Vietnam is the insurance company with the highest after-tax profit among the above 5 companies.
Prudential's 2022 after-tax profit soared 670% to VND3,636 billion despite net revenue from insurance business falling 11% to VND34,610 billion.
This result was mainly due to high bank interest rates last year, especially in the second half of the year.
Dai-ichi Life Vietnam ranked second in terms of after-tax profit, reaching VND 2,646 billion, down 5% compared to 2021. This enterprise achieved VND 21,825 billion in insurance premium revenue, up 17% compared to 2021. Total compensation and insurance payments were also at the highest level, reaching VND 10,267 billion, up 25% compared to 2021.
For Manulife Vietnam, although the compensation payment increased by 36% compared to 2021, reaching approximately VND 7,000 billion, thanks to a 9.5% increase in insurance premium revenue to VND 26,835 billion, along with high interest rates on bank deposits, the profit after tax in 2022 reached VND 2,562 billion. This figure is extremely impressive because the company previously achieved a negative profit after tax of VND 4,700 billion in 2021.
Meanwhile, AIA Vietnam achieved VND 18,490 billion in insurance premium revenue, up 12% compared to 2021. Total insurance compensation expenditure was VND 11,345 billion (VND 10,489 billion in 2021). Profit after tax reached VND 1,110 billion, up 24% compared to the previous year.
Surprisingly, Bao Viet Life, although leading the insurance market share and having the highest life insurance premium revenue in the market, has the lowest after-tax profit among the top 5 enterprises.
In 2022, Bao Viet Life will achieve total life insurance premium revenue of VND 41,677 billion, an increase of 10.1%. Profit after tax will reach VND 975 billion, an increase of 10% compared to 2021.