Uneven profit growth highlights diverging fortunes across insurers
Insurers are posting sharply different profit performances highlighting a widening gap between growth quality and the underlying factors relevant to corporate earnings
Across Vietnam's insurance sector, profit growth is proving to be uneven as various companies experience diverging fortunes. PVI Insurance, a subsidiary of PVI Holdings, achieved a pre-tax profit of $49.6 million in the first half of 2026, just shy of its year-end target of $49.7 million. However, revenue projections remain relatively flat, indicating uneven progress.
Other insurers are also showing varying degrees of profitability. Bao Minh Insurance Corporation, for instance, reported a 26% increase in pre-tax profit to over $8.84 million for H1 2026, while Military Insurance Corporation saw a 5.9% rise in pre-tax profit to $9.8 million, coupled with a 32% increase in revenue. OPES Insurance, on the other hand, reported nearly three times the profit of the previous year, with pre-tax profit reaching $24.5 million in H1 2026.
Meanwhile, BIDV Insurance Corporation and Post and Telecommunication Insurance Corporation faced challenges, with profit falling by more than 15% and 15% respectively, primarily due to increased claims expenses. DBV Insurance saw a significant drop in pre-tax profit, down 33% from the same period in 2025.
For Bao Viet Group, which owns two insurance companies, the results paint a contrasting picture. While the group's consolidated revenue grew by 9.2% to $1.28 billion, profit after tax increased by a more impressive 33.9% to $74.5 million. However, Bao Viet Insurance, a part of this group, only saw a modest 5% increase in profit after tax, highlighting a significant disparity between revenue and profit growth.
Analysts and economists note that premium growth is just one aspect of a company's performance. Controlling claims, acquisition costs, reinsurance, and investment efficiency are crucial in determining the quality of growth. Despite potential challenges, Vietcap Securities forecasts that the financial sector, including non-life insurers, will continue to exhibit differentiated growth in the second half of 2026, supported by higher interest rates and improved business operations.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
