Non-life insurance market continues to grow

VCN - Non-life insurance achieved many positive results after the first half of 2024, creating an important foundation to soon complete the 2024 full-year target.
Investment business of insurance enterprises are managed more strictly Investment business of insurance enterprises are managed more strictly
Insurance market maintains growth momentum Insurance market maintains growth momentum
Improve processes and enhance experience to rebuild trust in life insurance Improve processes and enhance experience to rebuild trust in life insurance
The non-life insurance market still records positive growth. Photo: ST
The non-life insurance market still records positive growth. Photo: ST

A picture of high growth in business

There are still businesses that are experiencing a decline in profits. For example, at Saigon - Hanoi Insurance Corporation (BSH), the consolidated financial report for the first 6 months shows that after-tax profit in the second quarter of 2024 increased by nearly 24% compared to the same period last year, reaching more than VND 52 billion, but due to having to compensate for the loss in the first quarter of 2024, the total profit for the first 6 months decreased by nearly 37% and reached nearly VND 32 billion.

According to a report from the Ministry of Finance, in the first 7 months of 2024, total insurance premium revenue is estimated at VND 126,675 billion, down 2.21% over the same period last year; insurance benefit payments are estimated at VND 49,142 billion, up 25.06% over the same period in 2023, etc. Although the whole sector's revenue decreased slightly, in the non-life insurance sector alone, the figure is quite positive, estimated to increase by 11.23% in the first 6 months of 2024, in contrast to the 9.8% decrease in life insurance.

On the business side, the financial reports for the first 6 months of 2024 of non-life insurance companies all recorded growth in revenue and profit, with some companies even growing at double digits. For example, at PVI Insurance Corporation, total revenue reached VND 12,016 billion, up 65.7%; pre-tax profit reached VND 502 billion, up 42.6% over the same period last year - leading the growth rate in the non-life sector.

Previously, at the end of March 2024, PVI was approved by the Ministry of Finance to increase its charter capital from VND 3,300 billion to VND 3,500 billion. PVI representative said that the increase in charter capital helps improve financial capacity, creating favorable conditions for the process of expanding the network of operations, investing in facilities, technology, diversifying products and services to better meet the increasing needs of customers; at the same time, helping PVI Insurance gradually firmly participate deeply in the international insurance market. In addition, the high growth rate is also thanks to PVI's implementation of many new insurance programs through e-commerce partners along with new products such as auto emergency rescue insurance, supplementary health insurance, etc.

At Military Insurance Corporation (MIC), in the first 6 months of 2024, original insurance revenue reached VND 2,575 billion, up 6.1% over the same period; total profit reached VND 176.5 billion, up 9.5% over the same period last year. Petrolimex Insurance Corporation (PJICO) recorded after-tax profit in the first half of 2024 reaching more than VND 157 billion, up 4.1% over the same period last year; In which, net revenue from insurance business activities reached more than 1,795 billion VND, an increase of 12% over the same period in 2023. Bao Minh Joint Stock Corporation also recorded after-tax profit of more than 150 billion VND, a slight increase of 2% over the same period in 2023, etc.

Optimize sales channels, focusing on digital channels

With positive results in the first half of the year, non-life insurance companies are all aiming to reach their business plans for the whole year of 2024. According to information from the Department of Insurance Management and Supervision (Ministry of Finance), the Vietnamese insurance industry is looking forward to a promising year, with total non-life insurance premium revenue in 2024 estimated at VND 79,687 billion, up 12% over the same period in 2023.

According to experts, the level of competition in the industry is increasing, as many insurance companies enter the market, including both domestic and international enterprises. Therefore, non-life insurance companies must find ways to come up with new strategies and directions on the path of development.

MIC representative said that the Company would continue to diversify and optimize sales channels based on maximizing the ecosystem of MB Group, banks, large corporations, partners, and strategic customers. In particular, it will focus on promoting sales through digital channels through the development of high-tech products, completely digitizing the sales process through digital channels from the stage of searching and screening customers to the stage of compensation and renewal, etc. Similarly at PVI, the Company's leadership said that it would continue to promote the development of e-commerce and brokerage channels; expand international markets to develop the scale of reinsurance revenue; arrange new reinsurance contracts to improve the efficiency of insurance operations.

Moreover, at many non-life insurance companies, the participation of "foreign shareholders" is expected to bring a new breeze for more positive business results. For example, DBI Insurance, a subsidiary of DB Group (Korea), currently holds 75% of charter capital at BSH and Vietnam Aviation Insurance Corporation (VNI) and 35% of charter capital at PVI, thereby not only providing financial resources but also sharing management experience, advanced technology and development strategies. As evidence, in the first 6 months of 2024, VNI recorded original insurance revenue of nearly VND 1,385 billion, an increase of 24.3% over the same period last year and 2 times the overall growth of the whole market, helping VNI's pre-tax profit in the first 6 months of 2024 increase by 161.4% over the same period in 2023.

At BSH, the participation of foreign strategic shareholders is also expected to help the company regain growth momentum, creating leverage to help BSH expand the market while promoting technology development capacity, improving service quality, etc.

In addition, Vietnamese non-life insurance companies are also strengthening cooperation with each other to unite into "strength" to meet high contracts and requirements from customers. In early July 2024, a consortium of insurers, led by Bao Viet Insurance Corporation and PVI, BSH and VNI Companies, signed a cooperation agreement with HBRE Group to provide insurance services for the first and largest offshore wind power project in Vietnam with a total investment of 2.4 billion USD in Vung Tau.

By Huong Diu/ Phuong Linh

Related News

Proposal to invest in equipment for control activities at Buprang and Dak Peur border gates

Proposal to invest in equipment for control activities at Buprang and Dak Peur border gates

VCN - On September 18, Dak Lak Customs Branch and Dak Nong Provincial Border Guard Command held a conference to review 5 years of coordination between the two units to improve the effectiveness of coordination in the fight against smuggling, trade fraud, illegal transportation of goods across the border, and maintain security and order in border areas and border gates.
Improve business environment to unlock potential for businesses

Improve business environment to unlock potential for businesses

VCN - According to Mr. Mac Quoc Anh, Vice Chairman and General Secretary of the Hanoi Association of Small and Medium Enterprises, despite current challenges, many resources are mobilized to optimize business results.
Exporting phone and component to India grows 102%

Exporting phone and component to India grows 102%

VCN - India is one of the key export markets where the phone and component group has achieved impressive growth.
Opportunities for growth model innovation are available

Opportunities for growth model innovation are available

VCN- According to Associate Professor, Dr. Bui Quang Tuan, former Director of the Vietnam Economic Institute, the economy can make a breakthrough thanks to innovation. The more innovative and drastic the implementation, the higher the growth quality will be, and the faster and more sustainably the economy will develop.

Latest News

Important step to soon upgrade stock market

Important step to soon upgrade stock market

VCN - According to experts, the Ministry of Finance's issuance of Circular No. 68/2024/TT-BTC dated September 18, 2024 is an important step in the process towards the goal of improving the quality of the Vietnam’s stock market.
Accelerate implementation of solutions to disburse public investment capital

Accelerate implementation of solutions to disburse public investment capital

VCN - Facing the impact of storm No. 3 on economic growth, many experts continue to believe that public investment will play a key role in economic recovery and growth for the entire year of 2024. However, there is only one quarter left until the end of 2024. The target of disbursing at least 95% of investment capital is facing many difficulties.
E-commerce platforms may declare and pay taxes on behalf of traders

E-commerce platforms may declare and pay taxes on behalf of traders

VCN – At the press conference for the third quarter of 2024 hold by the Ministry of Finance on September 27, the representative of the General Department of Taxation discussed contents related to tax management.
Ministry of Finance responds to information on proposal to tax real estate

Ministry of Finance responds to information on proposal to tax real estate

VCN - Responding to the hot issue of public concern regarding the proposal to tax real estate transactions to prevent speculation in the real estate market, at the press conference for the third quarter of 2024 held by the Ministry of Finance on September 27, Deputy Minister Nguyen Duc Chi gave the Ministry’s viewpoint.

More News

Maintain smooth operations of Customs, Tax and Treasury to support businesses and people affected by storm No. 3

Maintain smooth operations of Customs, Tax and Treasury to support businesses and people affected by storm No. 3

VCN – The Ministry of Finance has requested to maintain smooth operations of Customs, Tax, Treasury agencies and national reserve units to support production and business activities and people after the storm, Deputy Minister of Finance Vo Thanh Hung said.
Capital market could be major financial source for private sector: WB

Capital market could be major financial source for private sector: WB

The Vietnamese equity market boasts strong potential to become a major source of financing for the private sector, according to specialists from the World Bank.
Typhoon debt relief measures may impact bank profitability in Vietnam

Typhoon debt relief measures may impact bank profitability in Vietnam

Vietnamese banks' profitability is expected to be squeezed following their provision of debt relief to support borrowers affected by a recent deadly typhoon, according to the latest report by S&P Global Ratings.
VAT reduction is necessary but not tool used every recession: Canadian expert

VAT reduction is necessary but not tool used every recession: Canadian expert

VCN – The VAT reduction is necessary but is not a tool used in every recession said by the expert from the Canadian Ministry of Finance at the discussion session on fiscal policy within the framework of the Financial Policy Dialogue Workshop between the Vietnamese Ministry of Finance and the Canadian Ministry of Finance in 2024, held on September 25.
Vietnam to achieve credit rating as set target

Vietnam to achieve credit rating as set target

VCN - With the current credit rating scale, Vietnam is getting closer to the target of raising the investment rating grade by 2030 set out in the National Credit Rating Improvement Project by 2030.
Control cash flow, target the right segment

Control cash flow, target the right segment

VCN - This is the opinion of Dr. Nguyen Van Dinh, Vice President of Vietnam Real Estate Association in an interview with reporters about the difficulties in capital sources in the current real estate market.
Taxation authority to hold dialogue with taxpayers in five localities

Taxation authority to hold dialogue with taxpayers in five localities

The General Department of Taxation will organise a direct dialogue with taxpayers from five provinces and cities to hear feedback on the practical implementation of current tax policies.
HCMC Tax Department focuses on resolving land dossiers as soon as possible

HCMC Tax Department focuses on resolving land dossiers as soon as possible

VCN - Immediately after the HCMC People's Committee issued a document allowing the use of the current land price list to calculate taxes while waiting for the issuance of the new land price list, the HCMC Tax Department directed tax branches to prioritize and focus resources to resolve land dossiers received from August 1st as soon as possible.
Many banks stop transactions of ATM magnetic cards

Many banks stop transactions of ATM magnetic cards

Many banks have recently announced they are stopping transactions of domestic automated teller machine (ATM) cards with magnetic strips, to ensure security for customers in the context of increasing cybercrimes.
Read More

Your care

Latest Most read
Important step to soon upgrade stock market

Important step to soon upgrade stock market

VCN - According to experts, the Ministry of Finance's issuance of Circular No. 68/2024/TT-BTC dated September 18, 2024 is an important step in the process towards the goal of improving the quality of the Vietnam’s stock market.
Accelerate implementation of solutions to disburse public investment capital

Accelerate implementation of solutions to disburse public investment capital

VCN - Facing the impact of storm No. 3 on economic growth, many experts continue to believe that public investment will play a key role in economic recovery and growth for the entire year of 2024. However, there is only one quarter left until the end of 2
E-commerce platforms may declare and pay taxes on behalf of traders

E-commerce platforms may declare and pay taxes on behalf of traders

VCN - According to reporters, many opinions said that the draft revised Law on VAT stipulates that the VAT taxable revenue at less than VND200 million/ year, which is not consistent with the reality.
Ministry of Finance responds to information on proposal to tax real estate

Ministry of Finance responds to information on proposal to tax real estate

VCN - Responding to the hot issue of public concern regarding the proposal to tax real estate transactions to prevent speculation in the real estate market, at the press conference for the third quarter of 2024 held by the Ministry of Finance on September
Maintain smooth operations of Customs, Tax and Treasury to support businesses and people affected by storm No. 3

Maintain smooth operations of Customs, Tax and Treasury to support businesses and people affected by storm No. 3

VCN - In addition, the Prime Minister has issued a decision to provide rice, corn and other crop varieties to support agricultural production recovery.
Mobile Version