Manulife Vietnam has reported record profits, holding more than VND 60,000 billion in bonds and VND 13.7 trillion in bank deposits.
In 2022, Manulife Vietnam recorded a pre-tax profit of VND 3,251 billion, almost three times higher than Bao Viet Group, the largest insurance enterprise listed on the stock exchange. Previously, Manulife Vietnam had a pre-tax loss of over VND 5,927 billion in 2021, local media reported.
According to a recent financial report released by Manulife Vietnam, the company’s pre-tax and after-tax profit in 2022 reached VND 3,251 billion and VND 2,562 billion, respectively. In contrast, the company suffered a pre-tax loss of VND 5,927 billion and an after-tax loss of VND 4,741 billion in 2021.
With these results, Manulife Vietnam’s individual pre-tax profit is almost three times higher than that of Bao Viet Group (VND 1,102 billion), the largest insurance company listed on the stock exchange.
In the past year, Manulife Vietnam’s net revenue from insurance business reached over VND 26,322 billion, up 9% compared to 2021.
Total insurance business expenses decreased by more than 33%, to VND 18,580 billion. Compensation and insurance payments were nearly VND 15,379 billion (down 36.7%), while insurance commission costs decreased by 5% to VND 3,191 billion.
After deducting expenses, Manulife Vietnam recorded a gross profit of more than VND 7,742 billion from its insurance business, compared to a loss of VND 3,649 billion in 2021.
Revenue from financial activities reached more than VND 4,820 billion, down 5%. Profit from bond investment increased by 14%, while profit from stock trading decreased by 65% to VND 2,687 billion and VND 480 billion, respectively. Profit from this activity decreased by 42% to VND 2,454 billion due to a sharp increase in financial expenses by nearly three times, mainly because of provisioning for devaluation of securities investment and loss of stock trading.
Deducting expenses, Manulife Vietnam recorded a record profit after tax of more than VND 2,562 billion, compared to a loss of VND 4,741 billion in 2021.
From 2015 to 2021, net revenue from insurance business steadily increased over the years, but Manulife Vietnam only recorded positive profits in 2016 and 2019, reaching VND 372 billion and VND 1,031 billion, respectively. In the remaining years, the company suffered losses after tax ranging from VND 312 billion to VND 4,741 billion.
With these results, Manulife Vietnam has had its most successful business year since operating in Vietnam in 1999. By the end of 2022, Manulife Vietnam’s total assets reached nearly VND 106,379 billion, up 14.4% compared to the beginning of the year. The asset size of Manulife Vietnam is equivalent to that of a mid-range bank in the country.
Manulife Vietnam’s short-term investments in 2022 increased by one and a half times, reaching more than VND 21,998 billion. Investments in stocks were more than VND 7,875 billion, an increase of VND 2,065 billion compared to the beginning of the year. Short-term deposits increased by more than VND 5,242 billion to VND 11,769.
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Manulife Vietnam is one of the first foreign life insurance companies operating in the Vietnamese market. Currently, 100% of Manulife Vietnam’s capital is owned by Manulife Financial Group (headquartered in Canada).
The company said it is serving more than 1.5 million customers with a network of 80 offices across the country. In recent times, Manulife Vietnam has continuously led the market in terms of revenue and market share of the life insurance market.
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Source: Vietnam Insider