After a tough year in 2023, the business performance of life insurance companies has not yet recovered.
The companies are still struggling in the context of economic difficulties and the consequences of last year’s confidence crisis.
Q2 2024 financial reports of many life insurance companies showed a marked fall in profits. Some companies even made losses, mainly down to their core business segments, news portal vnbusiness.vn reported.
Prudential Vietnam Life Insurance Company recently announced its 2024 semi-annual financial report, recording a pre-tax profit of VND1.09 trillion, down 31.79% year-on-year, equivalent to a decrease of VND509 billion.
The reason for the decline in profits is that Prudential's original insurance premium revenue in the first half of this year only reached more than VND11.14 billion, down 13.22% year-on-year.
Meanwhile, a mid-year business performance report for 2024 of AIA Vietnam Life Insurance Company released recently showed the company’s net insurance revenue and pre-tax profit reached nearly VND6.86 trillion and more than VND581 billion, down about VND700 billion and nearly half of that compared to the same period last year, respectively.
FWD Vietnam Life Insurance Company also recorded revenue of VND1.96 trillion from insurance business in the first six months of this year, down 22.5% compared to 2023. The company gained an after-tax profit of VND290 billion, down 70% compared to the same period in 2023.
Similarly, Generali Vietnam Life Insurance Company announced that its net revenue from insurance business in the first six months of 2024 decreased by nearly VND300 billion to more than VND1.47 trillion compared to the same period last year. The company's after-tax profit also decreased sharply to VND116.7 billion against VND449.8 billion in the same period last year.
Manulife also reported that its net revenue from insurance business in the first half of 2024 reached only a little over VND8.43 trillion, down 24% compared to the same period last year. After deducting expenses, the company's net after tax profit was nearly VND1.7 trillion, down 13% compared to the same period last year.
Cathay Life announced its 2024 semi-annual financial report with net revenue from the insurance segment of nearly VND1.65 trillion, up 18% over the same period last year. However, due to many increased costs the company made very little profit from this segment.
In contrast, its financial revenue in the first six months of this year reached more than VND1.19 trillion, up 29%, which helped the company achieve an after-tax profit of more than VND836.3 billion, a slight decrease compared to the same period last year.