Sun Life Vietnam has been fined VND130 million (approximately $5,030) by Vietnam’s Ministry of Finance for breaching regulations related to a universal life insurance product, The Investor VAFIE Magazine reported.
According to a decision issued by the Insurance Supervisory Authority on December 12, the insurer failed to comply with approved terms, rules, and the premium structure of a product featuring a three-year premium payment and 10-year coverage.
The company also received a formal warning for providing sales illustrations deemed inaccurate, incomplete, or unclear, which the authority said may have hindered customers' ability to make informed decisions.
In addition to the financial penalty, Sun Life Vietnam has been temporarily suspended from signing new insurance contracts for 2.5 months. The company is required to take corrective action to restore compliance with the product's approved structure and regulatory requirements.
The company, a subsidiary of Canada-based Sun Life Assurance Company, reported a net loss of VND868 billion ($3.36 million) in 2024, marking its eleventh consecutive year of losses since entering the Vietnamese market in 2013.
According to its audited financial statements, insurance premium income totalled VND3.4 trillion ($131.4 million) in 2024, down 18.8% from the previous year. Meanwhile, expenses related to insurance operations increased slightly to VND1.99 trillion ($77.27 million), and insurance payouts rose nearly 35% year-on-year to VND1.61 trillion ($62.2 million). Gross profit from insurance activities declined 66% to VND1.29 trillion ($50.06 million).
As of year-end 2024, the company reported accumulated losses of nearly VND6.36 trillion ($246 million), with owner’s equity of VND11.58 trillion ($447.6 million). Total assets stood at VND20.79 trillion ($803.83 million), including VND6.96 trillion ($269.15 million) in long-term investments and VND9.21 trillion ($356.17 million) in liabilities.
Headquartered in Ho Chi Minh City, Sun Life Vietnam operates two branches, 25 sales points, and 24 agency offices. The company employed 590 people in 2024 and reported spending VND421 billion ($16.27 million) on salaries and VND943 billion ($36.41 million) on agent bonuses.
