Banks in Vietnam are generating high fee incomes from bancassurance, and experts in the financial sector expect the channel to be continue to be the main driver of the banks' service income growth.
Vietnam's non-life insurance market with a total premium of nearly VND60tn ($2.6bn) in 2021 is expected to be more active in 2022, given the increased interest in the sector.
A survey of SME businesses in South and Southeast Asia has highlighted a gap in their current protection levels and the risks they currently face.
Vietnam National Reinsurance Corporation (VINARE) is expected to continue delivering strong operating performance, which could be supported by the company's underwriting discipline and improved pricing conditions in several lines of business, says AM Best.
Insurance premium revenue in Vietnam is expected to return to a high-growth momentum in 2022 after the last two years when business was affected by the COVID-19 pandemic.
Manulife led the life insurance sector in Vietnam in 2021 in terms of first-year premiums, bagging just over $500m.
Vietnam's top insurers have reported double-digit increases in profits for 2021 thanks to growth in business and windfall income from financial investments.
Consumer finance provider Home Credit and MSIG announced a strategic partnership to expand insurance offering and support financial inclusion in Southeast Asia. The agreement will see MSIG leveraging Home Credit's regional distribution network to serve insurance customers across Vietnam, the Philippines and Indonesia. The two companies are aiming to increase the current low levels of retail insurance penetration in the three countries where demand for retail insurance services is growing rapidly.
A period of further shareholding changes, which has seen the Hanover-headquartered HDI group regain majority ultimate ownership of PVI Holdings, has led AM Best to remove from under review with developing implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb" (Good) of PVI Reinsurance Joint-stock Corporation (PVI Re). The outlook assigned to these credit ratings is 'Stable'.
Post-Telecommunication Joint Stock Insurance Corporation (PTI) has, over the past five years, reported a satisfactory average combined ratio of 97.3% (2016-2020) and an average return-on-equity ratio of 8.1%, notes AM Best.