Insurers record revenue increase during COVID-19
Insurance companies enjoyed an increase in sales in the first quarter of this year.
Bao Viet Holdings (BVH) has announced that its revenue increased by 12% to VND408 billion (US$17.4 million) in the period.
However, operating expenses soared by 286% to VND104 billion, which made its profit after tax to drop by 9% compared to that of the first quarter last year.
BVH's consolidated financial statements showed that insurance premium revenue increased by 9% to VND8.75 trillion.
In the first quarter which coincided with the COVID-19 pandemic, Bao Viet Insurance Corporation, a subsidiary of BVH, applied a 20% discount on some health insurance programmes.
Life insurance sector is contributed by Bao Viet Life with VND225 billion in revenue, up 16% year-on-year.
PetroVietnam Insurance Corporation (PVI), an enterprise operating in the field of non-life insurance, reported that its revenue in the first quarter grew by 51% to VND79 billion.
Vien Dong Insurance Joint Stock Company reported its net revenue from insurance increased slightly by 2% to VND541 billion, but after-tax profit decreased by 32% to VND10.7 billion.
Military Insurance Corporation (MIC) reported net revenue from insurance increased by 26% year-on-year to VND499 billion.
However, the total cost of the insurance business increased 37% to VND423 billion, which led to a 5% decrease in profit in the first quarter to VND28 billion.