Italian insurer Generali has
become Vietnam’s 12th life insurer following the granting of its
full license by Vietnam’s Ministry of Finance. Generali first
entered Vietnam in late-2009 through the establishment of a
representative office and in late-2010 was granted a preliminary
licence.
Generali’s formal entry into
Vietnam through its owned unit Generali Vietnam Life Insurance
Company brings the number of Asian countries and jurisdictions in
which now it operates to eight. The other seven are China, India,
Thailand, Philippines, Japan, Hong Kong and Indonesia.
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According to Generali, its
Asian operations as a whole enjoyed a 43.6% increase in premium
income in 2010.
The Italian insurer faces
stiff competition in Vietnam’s life market, which in 2010 recorded
an increase of 15.5% in total premium income compared with 2009 to
VND13.8trn ($775m), according to the country’s Insurance
Supervisory Department (ISD).
Leading the market again in
2010 in terms of new business was UK insurer Prudential’s
subsidiary Prudential Vietnam, which recorded a market share of
just under 39%, up from about 32% in 2009.
In second place was by Bao
Viet Life, the only truly Vietnamese-controlled life insurer, with
a market share of just over 22%, down from around 25% in
2009.
Moving from fourth position
in 2009 into third position was Ace Life Vietnam, a unit of
Swiss-domiciled Ace, which achieved a new business market share of
11.7%, up from around 10% in 2009.
In fourth position was
Dai-ichi Life Vietnam, which increased its market share from around
8% in 2009 to 10.8%.
Ace and Dai-ichi edged
Canadian insurer Manulife Financial’s Manulife Vietnam unit from
third new business position in 2009 into fifth position in 2010.
Manulife recorded a 10.3% market share in 2010, down from around
11% in 2009.
With a new business market
share of 9% in 2010, the Vietnam unit of American International
Group’s AIA subsidiary was in sixth position.
The ISD predicts that Vietnam’s life market will achieve
growth in new business of around 25% in 2011 while total premium
income is expected to be up by around 12%.
