According to six-month financial reports, many major life insurance companies recorded significant profit increases compared to the same period.
Prudential's after-tax profit exceeded 2,347 billion VND, an increase of over 245%. AIA's profit reached 572 billion VND, more than 10 times higher than the same period. Bao Viet Life also saw its profit rise by 50%, while Generali shifted from a loss to a profit. Sun Life still reported a net loss, but the loss decreased by nearly 85% compared to the same period last year.
This outcome contrasts with core insurance business operations. The life insurance market has not regained its growth momentum, with new premium revenue in the first half of the year falling by 17% to nearly 10,780 billion VND, according to data from the Insurance Association.
Individually, Prudential, Sun Life, and Bao Viet Life also experienced a 3-14% decrease in original premium revenue compared to the same period. Generali, however, remained almost flat.
Increased financial income was a clear supporting factor for major companies. Prudential recorded over 6,077 billion VND in financial revenue, a 44% increase; Bao Viet Life achieved over 7,650 billion VND, up 29%.
Meanwhile, for Sun Life and Generali, cost-cutting measures improved their business results. Selling expenses and commissions for both companies significantly decreased compared to the same period. Prudential also reduced this expense by about 30%.
Furthermore, in the first half of the year, the amount companies spent on compensation and insurance benefits sharply increased, commonly by double-digit percentages.
Financial statement notes indicate that at Prudential, Sun Life, and Bao Viet Life, payouts primarily stemmed from investment-linked insurance products (universal life/unit-linked).
At Sun Life, payouts for investment-linked products nearly doubled to 239 billion VND. Bao Viet Life spent over 6,440 billion VND, accounting for nearly 70% of total compensation and insurance payments. The corresponding amount at Prudential was 3,440 billion VND, representing about 41%.
According to the Insurance Association of Vietnam (IAV), the insurance industry in 2026 continues to face many challenges as domestic and international financial markets fluctuate, while natural disasters and epidemics remain complex.
The life insurance sector, specifically, is still in a recovery phase following a crisis two to three years ago. Since the second half of last year, companies have simultaneously restructured their portfolios, ceasing sales of many older products to comply with new regulations on investment-linked insurance. The IAV previously noted that this process requires time for the market to adapt, making it difficult for the market to return to high growth levels soon.
By Quynh Trang
