INDUSTRY PREVIEW

Vietnam Insurance Market 2018

Table of Contents

No Contents Page

1 Vietnam Insurance Market 3 - 11

1.1 Market Structure & Description 3

1.2 Size & Segmentation 4

1.3 Competition Dynamics 5

1.4 Key drivers 6

1.5 Market Prospects 7

1.6 Financial Indicators 8

1.7 Key players’ profiles 9 - 11

2 StoxPlus Introduction 12 – 22
 Market Structure & Description
Currently, there are 61 companies operating in Vietnam insurance market, mainly in life
insurance and non-life insurance. Other companies include reinsurers and brokers
Figure 1: Market Structure of Insurance Market, 1H2018

• OVERVIEW: Life insurance continued recording a rapid growth of 28.7% 2012 –

LIFE INSURANCE
2017 CAGR to US$ 2.9bn of premiums in 2017. This was thanks to higher income
(18 companies , per capita as well as the awareness of life insurance to invest in long-term and
9 representative mitigate risks from accidental disability and death.
offices ) • KEY NAMES: Bao Viet Life, Dai-ichi Life, Manulife, Prudential

• OVERVIEW: Non-life insurance kept stable with 12.2% 2012 – 2017 CAGR to
NON-LIFE INSURANCE US$ 1.8bn of premiums in 2017. Non-life insurance growth is driven by the
INSURANCE (30 companies, growth corresponding market such as vehicles, healthcare, real estate, etc,
Thanks to higher health care spending, health insurance grew fast and
MARKET 14 representative
contributed to 50.8% YoY growth of non-life insurance in 1H2018.
offices)
• KEY NAMES: Bao Viet Insurance, PVI, PTI, Bao Minh

RE-INSURANCE
(2 companies,
1 representative
offices)

BROKERS
(13 companies,
2 representative
Source: StoxPlus from MOF offices)
Page 3
 Size & Segmentation
Insurance market is growing rapidly by 20.7% CAGR in 2012 – 2017, with two main segments
being life and non-life insurance
Figure 2: Market size by insurance premiums (US$bn) and YoY growth of
Insurance Market, 2012 - 1H2018

2012 – 2017 CAGR = 20.7% Total YoY growth

21.6%
1H2018 YoY 2012-2017
SEGMENTS
21.2% Growth rate CAGR
1.8
19.6%
Life 32.4% 28.7%
26.0%
15.2% 1.6 12.2%
14.5% Non-life 13.0%
14.0% 1.4 22.4%
Total market 26.0% 20.7%
1.3 1.0
1.2 0.9
1.1 2.9
2.2
1.7 1.6
1.1 1.3 1.2
0.9

2012 2013 2014 2015 2016 2017 1H2017 1H2018

Life Non-Life
Source: StoxPlus from MOF

• Insurance market’s total premiums was US$4.7bn in 2017 and US$2.6bn in 1H2018, posting a CAGR 2012 – 2017 of 20.7%. Better income and higher awareness
are key drivers for the market’s performance. Compared to peers, Vietnam has much lower life insurance penetration rate and the market still has great
potential to grow

• Life insurance is the key segment with 28.7% CAGR 2012 – 2017, much higher than 12.2% CAGR of non-life insurance. The segment accounted for 62.7% total
premiums in 1H2018. Life insurance is expected to continue growing rapidly with the participation of foreign players. Companies continue partnering with
banks to access the customer database and utilize banks’ network. They also take the opportunities from e-commerce in offering products via online, mobile
platforms.

• Non-life insurance is expected to grow in medium and long-term when the economic growth reaches more advanced status. Along with product diversification,
insurance companies are investing in technology in claims management to bring in better customer experience and cut down the cost from frauds.

Page 4
 Competitors Dynamics
While non-life insurance market share concentrates on the hand of domestic companies,
foreign companies are leading the life insurance market
Figure 3: Life insurance’s market share by premiums, 1H2018 Figure 4: Non-life insurance’s market share by premiums, 1H2018

6.8%
2.0%
18.9% Bao Viet Life
2.8%
20.8%
3.1% Dai-ichi Life
34.1% Bao Viet Insurance
3.8% Prudential
PVI
Manulife
3.9% PTI
AIA
Bao Minh
Generali
PJICO
Chubb
10.1% 17.5% 16.5% MIC
MB Ageas
Hanwha VBI

Aviva 2.7% Others

Others 3.6%
14.7% 8.6%
16.5% 6.1%
7.6%

Source: StoxPlus from MOF Source: StoxPlus from MOF

• Foreign companies dominate the life insurance market with more than 69.2% market share. This was thanks to customer preference as well as the companies’
experience and technical knowledge. Domestic players hold less than 30% market share with Bao Viet being the biggest name thanks to its reputation, the
largest network (200 branches and 170,000 agents). Life insurance market still has growth potential, seeing higher competition among companies in acquiring
new customers using new products (focusing on fatal disease insurance with short-term plans) and new channels (bancassurance, e-commerce).
• The non-life insurance market is led by Vietnamese companies with more than 66.9% market share, foreign players’ market share is fragmented with 11
companies. Vietnamese companies’ leading position was thanks to their long historical development and foreign investors’ reluctance to join the highly
competitive market. The market has become more competitive, seeing top-5 companies’ market share decreased from 70% to 60% in the past 5 years. Along
with the 3 key sub-segments being vehicle, health and property, non-life insurers are competing in providing new products such as traveling insurance,
agriculture product insurance, etc,.

Page 5
 Key drivers
Higher income and improved awareness are main drivers of insurance growth, especially for
life insurance within the context of increasing risks of fatal diseases
Figure 5: Real GDP per capita (US$), 2012 - 2017 Figure 6: % of Vietnamese population ages 65 and above, 2010 - 2016
2,138.0
2,030.0 2,036.4
9.4% 10.1% 10.1% 11.9%
1,893.9
1,755.6
16.5% 17.5% 16.7%
19.2%
1,504.5

22.5% >= 60
22.8% 22.9%
22.7% 45 - 59
30 - 44

26.9% 25.7% 26.8% 15 - 29

22.3%
0 - 14

24.7% 23.9% 23.5% 23.8%

2012 2013 2014 2015 2016 2017 2010 2012 2014 2016

Source: StoxPlus from GSO Source: StoxPlus from GSO

• Thanks to higher personal income, Vietnamese people are spending more on and better educated about long-term investment and financial services. This
benefits the insurance market, especially in growing middle-income population, who haven’t exposed to insurance products before. The population proportion
of middle-income people (monthly income from VND 7.5mn to VND 15mn) increased from 21% to 39% in 2012 – 2016.
• In addition, higher health awareness when the Vietnamese population is becoming older and noninfectious disease death is increasing also contributed to the
growth of the life insurance market and healthcare segment of non-life insurance market
• Vietnamese population is becoming older with increasing percentage of population ages 45 and above from 26.8% to 31.2% from 2014 to 2016
• According to Vietnam’s Insitute of Cancer research and preventation, cancer rate is increasing rapidly from 69,000 new patients in 2000 to 150,000 and
200,000 new patients in 2015 and 2020e (source). People care more about mitigating risks from this fatal disease, resulting in a focus on cancer
insurance products

Page 6
 Market prospects
Vietnam insurance market has great potential as the penetration rate is still low compared
to its peers, while performance in the recent years has been topping the region
Figure 7: Insurance penetration of Vietnam and peer countries Figure 8: Insurance premium growth of Vietnam insurance and peer
(Total premiums as a % of GDP), 2017 countries, YoY 2017

31.6%
Singapore 8.2% 28.8%

23.0% 22.6%
Thailand 5.3%

Malaysia 4.8% 11.9%

10.0%
7.6% 8.0%
5.8%
China 4.6% 4.2%
1.5%

Indonesia 2.4%
-0.7%

Vietnam Thailand Indonesia Malaysia China Singapore

Vietnam 2.1%
Life Non-life

Source: StoxPlus from Swiss Re Institute Source: StoxPlus from The World Bank

• Compared to other peer countries, Vietnam’s insurance penetration is much lower with premiums equal 2.1% of GDP in 2017. The market has great potential
for growth and with 3 – 4% planned penetration rate in 2020 (according to the Vietnam’s insurance market development strategy). The progress is clear when
2017’s penetration rate was higher than the 2016’s rate of 1.8%
• Regarding growth, both life and non-life insurance performed well compared to peer countries. The market is expected to focus more on middle-income
customers acquisition via online and bank channels while keep high-income customers’ loyalty using products with larger coverage and compensation (Eg: Bao
Viet’Intercare packages cover customer aged 15 – 75 and compensate to VND 10bn)

Page 7
 Financial Indicators
Our Biinform portal provides ~ 1 million available company reports ready to purchase
Figure 9: Selected Financial Indicators (US$mn) of Key Players In insurance market, 2016

NET INSURANCE CLAIM NET PROFIT OWNER’S

TOTAL ASSET
COMPANY TYPE SEGMENT PREMIUMS EXPENSES AFTER TAX EQUITY
US$mn US$mn US$mn US$mn US$mn

Prudential Vietnam Ltd Foreign-owned Life insurance 587.3 554.3 56.3 2,644.3 251.6

Dai-ichi Life Vietnam Ltd Foreign-owned Life insurance 226.7 187.9 4.8 475.9 129.1

Manulife Vietnam Ltd Foreign-owned Life insurance 264.8 197.5 16.4 767.4 120.1

PVI JSC State-owned Non-life insurance 210.7 186.2 25.2 732.5 300.2

AIA Vietnam Ltd Foreign-owned Non-life insurance 202.5 126.9 8.1 442.9 65.3

Bao Minh JSC State-owned Non-life insurance 120.1 46.9 8.0 225.6 95.6

PTI JSC Private Non-life insurance 111.9 81.4 4.8 217.5 8.1

Source: StoxPlus
Note: The net insurance premiums takes into account both direct and reinsurance activities

Page 8
 Key Players’ Profile – Bao Viet Group
COMPANY PROFILING PRODUCTS AND SALE CHANNELS

• Registered name: Bao Viet Group • Products: Bao Viet owns 2 insurance companies with products as follows
• Head office: Bao Viet building, Hoan Kiem, Ha Noi • Bao Viet Life: Life insurance products including personal and family
for individuals, families and businesses
• Establishment Year: 1965
• Bao Viet Insurance: Non-life insurance products including car,
• Principal businesses: Established in 1965 as Vietnam Insurance
healthcare, property insurance, etc.,
Company, Bao Viet is now the largest insurance corporation in
Vietnam regarding total premiums with the strength of long historical • Sale channels: 200 branches, 700 offices and 170,000 consultants/agents in
development. The Company went listed on HOSE since 2009. 63 provinces
Currently, Bao Viet’s charter capital is US$299.3mn. Along with
• Bancassurance partnerships: Bao Viet currently partners with Orient
insurance activities, Bao Viet established other subsidiaries operating
Commercial Bank and Shinhan Bank
in banking, fund management, securities. The company partnered
with 2 strategic investors including Sumitomo Life and HSBC
Insurance.

FINANCIAL PERFORMANCE COMPANY POSITION

Figure 10: Bao Viet’s Net Premiums (US$mn), 2014-2017 Figure 11: Market Share of Bao Viet regarding total insurance premiums
(both life and non-life), 2014 - 2017
800.0 100.0%

640.0 80.0%

480.0 60.0%
Life Other insurers

320.0 Non-life 40.0% Bao Viet

160.0 20.0%

- 0.0%
2014 2015 2016 2017 2014 2015 2016 2017

Source: StoxPlus Source: StoxPlus

Page 9
 Key Players’ Profile – Dai-ichi Life Vietnam
COMPANY PROFILING PRODUCTS AND SALE CHANNELS

• Registered name: Dai-ichi Life Insurance Company of Vietnam, Ltd • Products: Dai-ich Life focuses on life insurance products including life
insurance and add-ons to insure against cancer, acidents, etc.
• Head office: Dai-ich Life building, Phu Nhuan, HCMC
• Sale channels: 275 offices and 8,000 consultants/agents in 63
• Establishment Year: 2007
provinces
• Principal businesses: Established in 2007, Dai-ichi Life Vietnam is the
• Bancassurance partnerships: Dai-ichi Life is working with VPBank,
first Japanese insurance company in Vietnam. After more than 11
SHBank and Sacombank in providing insurance products to customers.
years, the company’s total premiums has increased twenty times and
became a leading life insurance company with more than 17% market
share regarding premiums. The company’s current charter capital is
US$261.6mn.

FINANCIAL PERFORMANCE COMPANY POSITION

Figure 12: Dai-Ichi Life Vietnam’s Net Premiums (US$mn), 2014-2017 Figure 13: Market share of Dai-ichi Life Vietnam regarding premiums in
life insurance market, 2014 - 2017
350.0 100.0%

280.0 80.0%

210.0 60.0%
Other life insurers
140.0 40.0% Dai-ichi Life

70.0 20.0%

0.0 0.0%
2014 2015 2016 2017 2014 2015 2016 2017

Source: StoxPlus Source: StoxPlus

Page 10
 Key Players’ Profile – PTI
COMPANY PROFILING PRODUCTS AND SALE CHANNELS

• Registered name: Post and Telecommunication Joint Stock Insurance • Products: PTI provides non-insurance products including vehicle,
Corporation; healthcare, property and marine insurance. The company is leading
in the equipment insurance sector
• Head office: HAREC Building, Ba Dinh, Hanoi
• Sale channels: PTI has 47 subsidiaries and takes advantage from the
• Establishment Year: 1998
broad network of 10,800 post offices in 63 provinces
• Principal businesses: PTI has three main shareholders, namely South
• Bancassurance partnerships: PTI is currently working with Lien Viet
Korea-based Dongbu Insurance (37.32%), Vietnam Post Corp (22%) and
Post Bank in serving its customers
Vndirect Securities (22%). The company went listed on HNX in March
2011. PTI’s current charter capital is US$35.4mn.

FINANCIAL PERFORMANCE COMPANY POSITION

Figure 14: PTI’s Net Premiums (US$mn), 2014-2017 Figure 15: Market share of PTI regarding premiums in non-life
insurance market, 2014 - 2017
150.0 100.0%

120.0 80.0%

90.0 60.0%
Other non-life insurers
60.0 40.0% PTI

30.0 20.0%

- 0.0%
2014 2015 2016 2017 2014 2015 2016 2017

Source: StoxPlus Source: StoxPlus

Page 11
Table of Contents

No Contents Page

1 Vietnam Insurance Market 3 - 11

1.1 Market Structure & Description 3

1.2 Size & Segmentation 4

1.3 Competition Dynamics 5

1.4 Key drivers 6

1.5 Market Prospects 7

1.6 Financial Indicators 8

1.7 Key players’ profiles 9 - 11

2 StoxPlus Introduction 12 – 22
Overview
StoxPlus is a pioneer and a Vietnam’s leader in financial and business information services since 2008

• Date of incorporation: March 11, 2008;

• Legal representative: Mr. Nguyen Quang Thuan
• Number of staff: 80 (as of April 2018) including Data Analysts, Market
Analysts, IT Engineers and Product Developers.
• Charter capital: VND24 billion (US$1.1 million); Shareholders: NIKKEI:
17.55%; QUICK: 17.55%; Management and other: 64.9%;
• Two offices: Hanoi Head Office and HCMC Branch

StoxPlus Joint Stock Company

www.stoxplus.com

Financial Information Business Information Research & Consulting

www.fiinform.com
We offer below products leveraging on
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We offer below products on-the-shelf
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Leveraging on our financial and
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Page 13
Board of Directors and Management
Our Management have extensive and diverse experiences in information, technologies & related
services
Thuan Nguyen, FCCA
Chairman and CEO
Co-founder of StoxPlus
previously working as an
investment manager of
Vietnam Holding Asset
Management Ltd and
manager at PwC Vietnam &
Australia
Chiharu Kawai
Board Member
Representative from
QUICK Corp at StoxPlus.
He is currently General
Manager of Global
Business Department at
QUICK Corp.
Dong Le, CFA
Director, BiinForm
Previously Senior
Investment Manager at
BIDV-Vietnam Partners
Investment Management
and audit manager at
Deloitte Vietnam
Page 14
Hieu Nguyen, MBA
Vice Chairman
Co-founder of StoxPlus
previously working as a
specialist at the Department
for International
Development of UK (DFID) in
Vietnam. and Consulting
Manager at PwC Vietnam
Bolat Duisenov
Board Member
CEO of Kusto Group
Vietnam – a private equity
fund with AUM of US$300M
operating in Vietnam.
Trang Truong, MBA
Managing Director,
FiinForm
Managing Financial
Information Unit of
StoxPlus and lead business
analyst for innovative
product development at
StoxPlus
Yoichi Noor Iwamoto
Board Member
Representative of NIKKEI
Inc. at StoxPlus. He is
currently Managing
Director of NIKKEI CHINA
(Hong Kong) Ltd.
Huy Mac, CFA, FCCA
Board Member
A well-known financier
with Lehman Brothers
and KPMG. Recently he
was CEO of KB Securities
(Vietnam) and ex-DCEO of
MB Securities.
Tung Do
CTO
Oversight technology and
product development at
StoxPlus. Previously
various managerial
position at IT Outsourcing
firms including CMC and
EKGIS
Research and Consulting Services

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Page 15
Research and Consulting Services

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Research and Consulting Services

We differentiate our services by leveraging on our Corporate Database; Industry Database and Local
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Research and Consulting Services
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Research and Consulting Services

We are proudly making contribution to capital and trade flows within Vietnam and between Vietnam
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