Non-life insurers post strong Q1 profits amid market challenges

PVI Insurance maintained its leading position in Vietnam’s non-life insurance market in Q1, with revenue approximating $288.7 million and pre-tax profit hitting $11.5 million, surpassing its quarterly targets by 120.7 per cent and 63.3 per cent, respectively.

Many insurers post strong Q1 profits amid market headwinds

A standout in PVI Insurance's Q1 performance was its reinsurance segment, which generated $86.9 million in revenue, up 54.5 per cent on-year.

Cross-selling activities through major partners such as Mobile World, Samsung, Momo, Shopee, and Zalopay, also contributed significantly, generating $11.6 million, 1.8 times higher than the same period last year.

Positive results were also recorded at PVI Holdings, the parent company of PVI Insurance.

According to CEO Nguyen Tuan Tu, the group’s consolidated revenue was estimated at $312 million, fulfilling approximately 35 per cent of its annual target and exceeding the quarterly plan.

Consolidated profit reached $11.6 million, completing over 28 per cent of the year’s projection.

At Military Insurance Corporation (MIC), the premium revenue in Q1 was estimated at $50.7 million, with pre-tax profit reaching $5.02 million, marking a 31 per cent increase compared to the same period in 2024.

As per its 2025 business plan approved by shareholders at its AGM on March 31, MIC is aimuing for a 25 jump increase in premium revenue and 75 per cent profit growth, targeting nearly $21.6 million in profit.

Last year, MIC planned to achieve $17.6 million in pre-tax profit but closed the year with only $12.3 million, completing 70 per cent of the target and down 12.5 per cent on-year, mainly due to the impact of Typhoon Yagi.

Newcomers like Techcom Non-life Insurance JSC also showed promising results.

After just five months of operations, from October 2024 to February 2025, the company’s insurance premium revenue approximated $6 million.

While final figures are pending, many other insurers have also reported optimistic early-year business results.

According to the Ministry of Finance, non-life insurance premiums in Q1 totalled an estimated $880.6 million, up 10.6 per cent on-year.

Insurance firms anticipate that non-life premium growth this year will hover around 15 per cent, supported by strong demand in health and motor vehicle insurance.

Despite the strong start, the road ahead presents challenges for insurers.

Responding to shareholder concerns at the company’s AGM on April 22 about risks that could derail 2025 business targets, PVI Insurance’s leadership identified external factors as the main threats, such as new US tariff policies, climate change, and natural disasters.

However, CEO Pham Anh Duc emphasised that the company’s revenue from sectors related to import-export and foreign direct investment remains modest, minimising exposure to global shocks.

Likewise, revenue from oil and gas insurance has dropped to just 10 per cent of its revenue structure, so oil price fluctuations have limited impact.

“If there are no unforeseen events like last year’s Typhoon Yagi, we are confident of meeting our 2025 business targets,” Duc said.

Dương Thanh Danh Francois, vice chairman of PVI Holdings’ board of directors, added, “Even in the worst-case scenario of a global trade war, which we have factored into our forecasts, PVI's revenue might decline by around 10 per cent, a manageable level for which we’ve already prepared contingency plans.”

Another concern across the non-life insurance industry is that profit growth is lagging behind revenue growth due to unfavourable market conditions.

Some firms reported revenue of tens of millions of US dollars, but earned just over $400,000 in Q1 profit.

“PVI Insurance is investing significantly in financial channels, but unpredictable market fluctuations and persistently low interest rates have affected overall performance, directly impacting profits at both the parent company and its subsidiaries,” said CEO Nguyen Tuan Tu at parent company PVI Holdings.

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