Vietnam’s Insurance Sector: A Quiet Resilience Amidst Market Upheaval
By Ngoc Diem, Chau Anh
Wed, August 13, 2025 | 8:50 am GMT+7
While the Vietnamese stock market has experienced an incredible surge, the insurance sector seems to have taken a back seat. Over the past few months, despite a strong recovery in investment income and improving core business performance, insurance stocks have predominantly gone sideways, sitting idly amidst the market’s dramatic rally to record highs.
Market Overview: A Feast for Investors
The past three months have seen the Vietnamese benchmark VN-Index soar more than 500 points, climbing from a low of 1,094. This surge is attributed to various sectors, especially properties, brokerage, and banking stocks, which have all set new records. However, for insurance companies, the experience has been starkly different.
Many insurance tickers have either remained flat, experienced small declines, or modest gains during this bullish period. For example, Petrolimex Insurance Corporation (HoSE: PGI) saw a decrease from approximately VND25,160 per share at the end of April to VND20,450 ($0.78). Similarly, Bao Minh Insurance Corporation (HoSE: BMI) has traded mostly between VND20,000-21,000 ($0.76-0.8).
Bright Spots in an Underwhelming Sector
Despite the overall underperformance in the sector, there have been notable exceptions among a few leading insurers. Bao Viet Holdings (HoSE: BVH) has managed to increase its share price significantly, rising from about VND44,000 to VND53,500 ($2.04)—a growth of 21.5%. Likewise, Military Insurance Corporation (HoSE: MIG) saw a climb from VND16,000 to VND19,150 ($0.73), marking an increase of 19%.
A significant development has been observed with BIDV Insurance Corporation (BIC), whose share price surged from approximately VND34,000 to VND48,950 ($1.86) following news of a substantial payout. A cash dividend of 15% along with a 72.3% stock bonus was announced—the latter being BIC’s first since 2014, attracting attention in a sluggish market.
Performance Metrics: An Inside Look
Even though insurance stocks remained undervalued, the Q2 performance metrics are quite promising. The rebound in insurance operations has been remarkable, enabling many insurers to record impressive earnings growth.
Bao Viet Holdings reported a gross profit of VND592 billion ($22.54 million) in Q2, a rebound from a loss of VND402 billion ($15.3 million) the previous year. Their net after-tax profit soared by 60.6%, reaching VND705 billion ($26.84 million). Similarly, MIG’s gross profit from insurance operations grew by 23% in Q2 to VND152 billion ($5.79 million), boosting after-tax profit by 49%.
PVI Holdings and Bao Minh also reported significant growth, showcasing a robust recovery and performance amidst the market’s turmoil. These figures underscore that despite the stocks’ stagnancy, the underlying business health remains solid.
Challenges and Opportunities Ahead
Historically, Vietnam’s insurance sector has endured periods of instability, particularly a crisis of confidence in 2023 that impacted market premium revenue, which declined by an estimated 0.25% to VND227.5 trillion ($8.66 billion). However, recent data illustrates a renewed vigor in 2025. In the first five months of the year alone, market premium revenue surged by 4.4% to VND92.47 trillion ($3.52 billion). This bounce-back is encouraging and could signify a shift in investor sentiment moving forward.
Strategic Investment Maneuvers
To optimize returns amidst volatility, many insurers are leveraging cheaper capital and capitalizing on buoyant investment channels. For instance, by the end of Q2, PVI expanded its short-term financial investment portfolio substantially, growing to VND13.81 trillion from VND9.64 trillion ($366.96 million). This strategic maneuver reflects a broader trend among insurers, as they diversify investments, primarily into equities.
The increasing allocation towards equities could potentially yield better returns in a market marked by low deposit rates. However, this strategy bears risks, especially in a high-stakes environment influenced by factors like international trade tariffs.
Looking Forward: Cautious Optimism
As the insurance industry navigates these tumultuous waters, analysts remain cautiously optimistic. They point to a landscape ripe with potential for recovery, contingent on sustained profit growth and a favorable rate environment.
Despite the challenges ahead, the resilience of Vietnam’s insurance sector, demonstrated through improving performance metrics and strategic investment approaches, paints a picture of a sector that may yet benefit from the larger market rally. The upcoming months will be crucial as these insurers position themselves for opportunities in an evolving economic landscape.