Vietnam’s life insurance market is forecast to recover and grow robustly again in 2007 as some insurance companies reported solid operational results in the first half.
Bao Viet Life continued to take leading position among local insurers. The company posted premiums up 5 per cent to VND1.65 trillion in the first six months of this year, with revenue from new contracts rising 35 per cent from the same period last year.
In addition, Bao Viet Life grossed VND600 billion in financial investment in the first half, an increase of 20 per cent on year.
The company paid VND750 billion for customers in the period.
As a newcomer, the US’s ACE Life Vietnam has showed impressive operations with first six-month premiums growing 366 per cent against the same period last year. This is the record growth level in Vietnam’s life insurance market.
Operating in Vietnam from 2005, ACE Vietnam has been successful in selling its Universal Life and other products regarding endowment, term, accident and health insurance to individual and institutional customers.
Another US insurer, AIA Vietnam, has also reported positive results. In the first quarter, AIA attained new-contract premiums growth of 28.5 per cent on-year and total revenue growth of 4.7 per cent on-year. These figures increased faster in the second quarter at 39.4 per cent and 8.6 per cent, respectively.
Some other companies also saw sharp increase in premiums from new contracts, such as Prevoir reported premiums up 250 per cent, Manulife up 40 per cent and Daiichi Life up 22 per cent.
In the first six months, the life insurance sector attained new-contract growth of 25 per cent and total revenue growth of 9 per cent.
With such growth rate, Vietnam’s life insurance market is expected to grow higher in the second half of this year.
The market has been gloomy in last two years with the average premium falling between 3 per cent and 3.5 per cent. Some giant insurers such as Prudential, AIA, Manulife and others suffered reduced revenue and market share.
In 2006, number of agents was reduced by more than 30 per cent compared to 2005. (Securities Investment, VietnamNet)
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