HÀ NỘI — The first quarter of 2024 showcased a varied performance among non-life insurance companies, with some reporting significant profit growth while others experienced declines.
Several non-life insurance companies recorded positive results in the first three months of 2024. Vietnam National Aviation Insurance JSC (AIC) saw its revenue from insurance activities increase from VNĐ436 billion to nearly VNĐ500 billion, marking a year-on-year rise of VNĐ63 billion. AIC’s pre-tax and after-tax profits surged by nearly 50 percent compared to Q1 2023, reaching VNĐ10.4 billion and VNĐ8.4 billion, respectively.
AIC credited this improvement to the restructuring of its investment portfolio, which boosted financial revenue and after-tax profit compared to the same period last year. As of March 31, 2024, AIC’s total assets stood at VNĐ4.1 trillion, a growth of over 10 percent from the previous year. Short-term debt accounted for 99 percent of the company’s total debt, up 10 percent from the start of the year.
Four other major players in the insurance sector reported similar profit growth of 40 to over 50 percent during the same period. These companies include PVI Holdings (PVI), Bảo Long Insurance Corporation (BLI), and BIDV Insurance Corporation (BIC).
PVI achieved a pre-tax profit of over VNĐ446 billion in Q1, a 40.4 percent increase from the same period in 2023. BLI posted a pre-tax profit of VNĐ43.4 billion, reflecting a 41.5 percent rise. BIC’s pre-tax profit surged by 49 percent to nearly VNĐ148 billion, driven by a 23.3 percent increase in insurance business revenue and a 50.6 percent rise in financial activity revenue.
Conversely, some companies faced declining profits. Agriculture Bank Insurance Joint Stock Corporation (ABI), Vietnam National Reinsurance Corporation (VNR), and Bảo Minh Insurance Corporation (BMI) saw reduced earnings.
VNR experienced the steepest decline in pre-tax profit, down 25.3 percent to over VNĐ177 billion. Despite a 7.8 percent increase in net revenue from insurance business, high operating costs and limited financial activity support hindered VNR’s profitability. ABI and BMI saw slight decreases in pre-tax profit, down 2.2 percent and 1 percent to VNĐ86.5 billion and VNĐ91 billion, respectively, due to rising expenses outpacing revenue growth.
According to FiinProX statistics, as of early May 2024, the profits of insurance businesses increased by 21.1 percent overall.
Mirae Asset Vietnam Securities (MASVN) noted that insurance industry stocks, which have shown stable and consistent growth, are considered relatively safe investments.
In 2024, the insurance industry is expected to contribute an estimated investment capital of VNĐ850.3 trillion to the economy, an increase of 11.51 percent. Total insurance premium revenue is projected to reach VNĐ243.5 trillion, with non-life insurance accounting for VNĐ79.7 trillion (up 12 percent) and life insurance for VNĐ163.8 trillion (up 5 percent). — VNS
