Insurance companies see profits soar

By Tat Dat March 18, 2022 | 08:00 pm PT

A lady checking a brochure to choose an insurance product. Photo by VnExpress/Tat Dat

The country’s top insurers have reported double-digit increases in profits thanks to growth in business and windfall income from financial activities.

Petrolimex Joint Stock Insurance Company (PJICO) saw its profits double from VND175.5 billion ($7.6 million) in 2020 to VND352 billion last year.

BIDV Insurance Corporation’s profits rose by 34 percent to VND400 billion, and Bao Minh Insurance’s by 28.5 percent to VND250.6 billion.

Baoviet’s profits only grew by 20.5 percent but were the highest in the industry at VND1.99 trillion.

Its management attributed the growth to the financial investment. The company invested VND2.84 trillion in the market last year, mainly in listed stocks.

Analysts said profits also rose due to a surge in new business and rise in premium income.

SSI Research forecast revenues from insurance premiums could rise by 18 percent to VND256 trillion this year, driven by the recovery in demand and growing online insurance and collaboration with insurtech firms.

But it warned profits could fall this year as claims increase from last year’s low caused by social distancing.