Life insurers in Vietnam once again reported losses in 2018 despite ballooning revenue, continuing an alarming trend for their bottom line. While revenues continued to increase strongly, life insurers were hit hard by the fluctuations in government bonds, Photo: Le Toan According to the latest statistics from the Ministry of Finance (MoF), that 10 out of 18 life insurers in Vietnam made a loss in 2018, mostly due to high provision costs. This is the fourth consecutive year that life insurers stayed in the red in spite of booming revenues. In fact, in 2018, their proceeds in 2018 grew by 30 per cent, but the total after-tax loss was close to VND3 trillion ($130.4 million), while provisions reached VND20.26 trillion ($880.9 million), up 30 per cent on-year. The MoF explained that falling interest rates for Vietnamese government bonds were also to blame. The vast majority of life insurers in Vietnam invest in government bonds, and fluctuations in these rates can dramatically … [Read more...] about Improving life insurers’ bottom line
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Samsung Life Insurance is seeking opportunities to enter Vietnam by pouring capital into Baoviet Life, the biggest insurance company in Southeast Asia. Samsung Life has set eyes on Baoviet Life Newswire Koreatimes stated that Samsung’s insurance company is negotiating to buy Baoviet Life’s shares. “We can't comment on details at this point, but it is true the discussion is underway with Baoviet Life,” said a Samsung Life Insurance official. “There are hurdles to be addressed regarding some legal issues with the Vietnamese government.” Baoviet Life is the biggest local life insurance company with a staff of nearly 200,000 and 75 branches across the country. The company is leading the Vietnamese insurance market with 18.9 per cent of the market share, followed by Prudential and AIA. Several media agencies stated that Samsung Life is seeking to buy 20 per cent of Baoviet Life’s shares. The local insurer is fully owned by Bao Viet Holdings, … [Read more...] about Samsung Life eyes 20 per cent in Bao Viet Life?
Bảo Việt is Việt Nam’s largest life insurer with nearly 200,000 employees and life planners at its 75 branches across the country. — VNA/VNS PhotoViet Nam News HÀ NỘI — Samsung Life Insurance is seeking to make inroads into Việt Nam through an equity investment in Bảo Việt Life, the country’s largest life insurer, Koreatimes reports. South Korea’s largest life insurer said Tuesday it is in talks with Bảo Việt Life to acquire some of the Vietnamese firm’s shares. It is the seventh-largest listed company in Việt Nam. "We can’t comment on details at this point, but it is true the discussion is underway with Bảo Việt," said a Samsung Life Insurance official. "There are hurdles to be addressed regarding some legal issues with the Vietnamese government." Bảo Việt is Việt Nam’s largest life insurer with nearly 200,000 employees and life planners at … [Read more...] about Samsung Life seeks to acquire shares in Việt Nam’s largest insurer
Vietnam’s tourism and people in general suffered shocking news at the end of 2018 as a roadside bomb detonated near a bus as it crossed Al-Haram district, close to the well-known pyramids in Giza. The explosion killed three Vietnamese people and their Egyptian guide, while another 12 inflicted severe injuries. Shortly after the incident, Saigontourist Travel Service Company, the agency operating the Egypt tour, immediately worked with Bao Viet Insurance Corporation on the insurance benefits of the tourists. As announced by Bao Viet, those killed in the bomb attack will receive the maximum life insurance coverage amount of VND2.4 billion ($104,350), while the company will also support expenditure to complete procedures to take the bodies of the three victims home and organise funeral services. For the injured people receiving treatment in the North African country, the company will continue working with Egyptian hospitals to return them home as soon as possible. Each will be … [Read more...] about Travel insurance – the globetrotters’ amulet
PVIRe elected its new board of directors at its recent shareholders meeting Robust growth Figures released by the Ministry of Finance’s Insurance Supervisory Authority showed that last year, Vietnam’s non-life insurance market’s size reached $2 billion and insurance premium value jumped by 12 per cent on-year to reach VND43.6 trillion ($1.94 billion). Non-life insurers retained 68 per cent of insurance premium value, whereas the remaining 32 per cent was ceded to reinsurers to transfer risks, helping to shape a secondary market barely known to the Vietnamese public, the reinsurance market. Worldwide, this market is the playing field of long-standing financial institutions with a value reaching several hundred billion dollars, such as Swiss Re, Munich Re or legendary billionaire Warren Buffett’s Berkshire Hathaway Group, which boasts the second-largest revenue in the US. In Vietnam, the reinsurance market’s size reached VND13.07 trillion ($596.8 million) … [Read more...] about PVIRe taking the initiative on the reinsurance market