The Ministry of Finance has announced inspection results at 4 banking insurance enterprises including Prudential, MB Ageas, Sun Life, and BIDV (HM: BID ) MetLife. However, of the four inspected enterprises, not all of them recorded a positive business situation.
Of the four life insurance businesses that have just been announced, there is one enterprise that has suffered losses for 9 consecutive years with accumulated losses of up to VND 4,575 billion.
Prudential has big profits but its market share is gradually decreasing
In 2022, Prudential's total revenue will reach VND 34,610 billion, of which, net revenue from insurance activities will reach VND 30,557 billion, and revenue from financial activities will reach VND 4,000 billion. Prudential's after-tax profit reached VND3,636 billion, about 7.7 times higher than the profit in 2021. The reason is that the company has sharply reduced its insurance business expenses (down 33%), of which the total indemnification and insurance payments decreased by 37%.
Prudential's financial statements for 2022 show that the ratio of profit after tax to net revenue reached 11.91%, a sharp increase compared to 1.67% in 2021. Profit after tax on equity ownership reached 18.78%, more than 6 times higher than in 2021.
Prudential's profit is VND3,600 billion in 2022. According to Prudential, in 2022, the company has paid nearly VND9,600 billion of insurance for more than 2.1 million customers - an increase of 11% compared to 2021 and accounting for a quarter of the insurance market. life insurance in Vietnam.
In terms of market share, according to the Vietnam Insurance Association, by the end of September 2022, Prudential has the third largest market share in Vietnam's life insurance industry with 16.91%, behind Bao Viet (HN: BVS ). Life and Manulife. Although still in the 3rd position, Prudential's market share has gradually decreased since 2015 (from 29% to 18% in 2021).
MB Ageas profit still plunges despite a strong increase in insurance revenue
In 2022, MB Ageas Life Insurance Company Limited recorded net revenue of insurance business of VND 6,395 billion, an increase of VND 760 billion compared to 2021. However, the profit after tax of this business only reached VND 6,395 billion. 64 billion VND, equal to about 1/3 of the profit in 2021.
Although net revenue from the insurance business increased by 760 billion VND, many types of expenses of MB Ageas increased sharply such as administrative expenses increased by 145 billion VND. Financial expenses also increased from VND 25 billion to VND 292 billion. The total cost of claims and insurance payments skyrocketed in 2022 to 763.8 billion VND.
MB Ageas recorded negative growth in 2022. MB Ageas' investments include term deposits, fund certificates, government bonds, corporate bonds, and securities investment trusts. Notably, in the securities investment segment of the trust account, this business recorded up to 93 billion VND, while in 2021 this figure is only 2.8 billion VND.
Sun Life accumulated losses for nearly a decade
The audited financial statement of 2022 of Sun Life Vietnam recorded net revenue from the insurance business reaching VND 5,173 billion, up 72% over the same period, and financial income reaching VND 510 billion, up 4%.
Although revenue from insurance activities increased, Sunlife still suffered a loss after tax of more than VND 1,469 billion (almost VND 1,445 billion in the same period).
Notably, from the time it entered Vietnam's insurance market until now (in 2013), only the first year Sun Life Vietnam made a profit of VND36 billion, the remaining 9 financial years Sun Life Vietnam reported a profit of VND36 billion. negative profits. The consecutive loss caused Sunlife Vietnam to bear an accumulated loss of approximately VND 4,575 billion by the end of 2022.
Sun Life has accumulated losses for 9 consecutive years. Despite bearing accumulated losses, in 2022, Sun Life will spend heavily on initial training and agent certification exams up to 21 billion VND, nearly double in 2021. reward and support agents increased by 719 billion VND compared to 2021.
BIDV Metlife doubles profit even without exclusive bancassurance contract
In 2022, BIDV Metlife Life Insurance Company Limited reported insurance premium revenue of VND 1,758 billion, an increase of nearly VND 200 billion compared to 2021. The total amount of compensation and insurance payments was VND 1,013 billion. The profit after corporate income tax of BIDV Metlife reached VND 85.2 billion, more than doubled over the same period last year, although it has not signed an exclusive insurance distribution contract with other banks.
In 2022, BIDV MetLife's profit doubled compared to the same period last year. BIDV Metlife's financial income includes interest from bonds and interest on deposits. At the end of 2022, the company has VND 12 billion in demand deposits in banks, nearly 3 times higher than at the beginning of the year. Short-term deposits are VND1,719 billion. For long-term investment, BIDV Metlife has a term of VND1,424 billion, government bonds are VND843 billion, and corporate bonds and credit institutions are VND320 billion.