Manulife Vietnam was the insurer that led the market in revenue from financial investments, with VND4.82 trillion, contributing to a high post-tax profit of over VND2.5 trillion in 2022.

As of the end of 2022, the company had nearly VND23 trillion of short-term financial investment, up by VND9 trillion compared with the same period last year, including VND11.77 trillion of short-term deposits at banks.

Long-term financial investments were also high, VND62.75 trillion, higher than the VND53.7 trillion in the same period in 2021.

The second position belonged to Prudential Vietnam with revenue from bank deposits, bonds and dividends of VND4.015 trillion, which far exceeded the post-tax profit of VND3.636 trillion, though profit was six times higher than in 2021.

By late 2022, Prudential had long term financial investments of up to VND108.924 trillion, of which bond interest alone brought profit of VND7.5 trillion, while the interest from bank deposits was VND2.4 trillion.

However, because of stock market fluctuations, the company reported a loss of VND300 billion from securities investment.

The re-assessment of investment items of affiliate funds also caused Prudential a loss of VND3 trillion.

The third position belonged to AIA Vietnam. It collected VND2.485 trillion in 2022 from financial activities, making a big contribution to post-tax profit of VND1.11 trillion.

AIA’s short-term financial investments reached VND14 trillion, including VND884.69 billion of bank deposits at the average interest rate of 6 percent per annum, VND10 trillion of bank deposits at the interest rate of 5.28 percent and book value of trading securities reaching VND2.119 trillion.

As for long term financial investments, AIA reported VND28.273 trillion worth of book value, including VND23 trillion worth of government bonds, local authority bonds and corporate bonds, and VND5 trillion worth of long-term deposits at banks at an interest rate of 7.75 percent per annum.

The financial reports of other life insurers, including Dai-ichi Life Vietnam, Cathay Life, Chubb Life Vietnam, BIDV Metlife and Hanwha Life all reported high profits partially thanks to financial investments.

Fubon Vietnam and Sun Life Vietnam were the very few insurance companies that reported losses. Fubon Vietnam took a loss of VND31 billion, but the income from bank deposits was VND59 billion and from bonds VND50 billion. Sun Life incurred a post-tax profit of VND1.5 billion, but its financial investments bought the company VND509 billion.

According to the Insurance Association of Vietnam (IAV), as of the end of 2022, the top five insurers included Bao Viet, Prudential, Manulife, Dai-ichi Life and AIA, holding 76 percent of the life market share.

Manh Ha