Non-life insurance sees rosy first-half performance
The non-life insurance segment recaptured momentum, reaching double-digit growth in premium revenue in the first half of this year, with the indemnity rate also being forecast for an upsurge.
The latest statistics by Vietnam Insurance Association show that in the first half of this year, non-life insurers posted $1.44 billion in premium revenue, showing a 12.4 per cent jump on-year.
This means the non-life insurance segment has regained the double-digit growth that was seen in the pre-pandemic period, which is deemed quite impressive compared to the roughly 4 per cent growth of this segment last year.
|Non-life insurers expect growth momentum to be maintained for the remainder of the year|
Petrolimex Insurance Corporation (PJICO) raked in $81.6 million in premium revenue in the first six months this year, up 9.4 per cent on-year and equal to 51 per cent of the company’s full-year projection.
Significantly, the premiums of its major professional operations all surpassed half-year targets. For instance, maritime insurance premiums reached $16.8 million, equal to 66.7 per cent of the full-year plan and soaring by 36.7 per cent on-year. Those of fire, explosion, aviation, and mixed insurance touched $22.2 million, equal to 54.3 per cent of the full-year plan and showing a 16.6 per cent jump on-year.
Along with positive premium growth, PJICO reaped $6.55 million in pre-tax profit during the period, amounting to 60.3 per cent of its full-year plan.
Meanwhile, Post and Telecommunication Insurance Corporation eyed a 13 per cent jump in premium revenue to reach $148 million, equal to 55 per cent of its full-year plan.
Its two core products – motorised vehicle insurance and liabilities insurance – registered 13 per cent and 17 per cent growth respectively.
Bao Minh Insurance Corporation counted $123.1 million in total premium revenue, showing a 14.5 per cent jump on-year, and $7.45 million in pre-tax profit, equaling 50.4 per cent of its full-year plan and showing a slight increase on-year.
Several other firms have not yet announced their first-half business results but are expecting a more than 10 per cent hike in their premium revenue, with some even securing a 30 per cent jump on-year.
The Vietnam Insurance Association forecasts the growth in premium revenue of life insurers to be maintained for the rest of 2022, leveraging the continued rebound of production and business activities during the period and supportive policies.
For instance, Decree No.97/2021/ND-CP on compulsory fire and explosion insurance is expected to stimulate the purchase of such policies and Decree No.20/2022/ND-CP on compulsory insurance in construction investment activities that added a regulation for compulsory liability insurance for third parties should pave the way for revenue growth in liability insurance.
The indemnity rate, however, is also forecast to shoot up compared to the previous year.
According to the Investment Analysis and Consulting Centre under SSI Securities Corporation (SSI Research), the advantages associated with low indemnity rate as the insured had postponed their claims during the social distancing period could hardly repeat in 2022.
Claims are expected to return to normality or even stretch higher compared to the average level in some previous years.