Vietnam’s insurance sector invests US$6.7 billion in the economy

Investments are up by 18% compared to the previous year

Vietnam’s insurance sector invests US$6.7 billion in the economy

Insurance News

By Gabriel Olano

Vietnamese insurers have reinvested VND152.5 trillion (US$6.7 billion) in the economy, 18% higher than last year’s figure, according to the Insurance Association of Vietnam (IAV).
 
Non-life insurers invested US$1.6 billion, while life insurers contributed US$5.1 billion.
 
Many insurers have bought long-term government bonds, with investment in 20-year government bonds reaching US$266 million, IAV chairman Phan Kim Bang told The Hanoi Times.
The life insurance sector’s premium income grew by 29.5%, reaching VND36.6 trillion (US$1.6 billion), a 10-year high, according to Bang. Meanwhile, non-life insurance premium revenue was at VND31.3 trillion (US$1.4 billion), an increase of 14% from the previous year.
 
In addition, insurance companies’ financial capacity has seen a moderate increase. Total assets are up by 21.7% versus 2015, exceeding VND201 trillion (US$8.9 billion), with the non-life sector holding VND70 trillion (US$3.1 billion) and the life sector accounting for VND131 trillion (US$5.8 million).

Bang added that insurers have performed robustly in providing protection to their policyholders, as well as providing them with more value-added services. These insurers have helped implement several of the government’s initiatives, such as cover for offshore fishing boats, a voluntary pension plan, and mandatory fire insurance.


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