As the Vietnamese insurance market shows signs of recovery, Hanwha Life Vietnam has reported simultaneous growth in assets and profits for the first half of the year. While the life insurance sector continues to experience a decline, the rate of decrease has slowed. Hanwha Life Vietnam is expanding its presence in the local long-term financial planning market by leveraging its financial stability, sales network, and digital consulting system.
According to local media reports, including VnExpress, Hanwha Life Vietnam recorded total assets of approximately 24 trillion VND (about 1.33 trillion KRW) in the first half of this year, marking a 10% increase compared to the same period last year. The company stated that it has maintained its asset growth trend since 2023, strengthening its financial foundation despite a volatile market environment.
Profitability indicators also improved in the first half. Hanwha Life Vietnam's financial activity revenue exceeded 8250 billion VND (approximately 459.5 billion KRW), a 26% increase from the previous year. Pre-tax profit reached about 5500 billion VND (approximately 306.35 billion KRW), up 67% year-on-year. The solvency ratio stood at 461%, exceeding current regulatory requirements. The company explained that these indicators reflect its operational efficiency, financial management capabilities, and ability to fulfill long-term contracts.
The scale of customer benefit payments was also highlighted as a key aspect of the first half's performance. Hanwha Life Vietnam paid out over 7940 billion VND in insurance claims and benefits from January to June this year. The company emphasized that its commitment to supporting customers throughout the insurance contract period has been validated through actual payments, particularly highlighting its protective role during challenging times for customers.
A representative from Hanwha Life Vietnam commented on the first half's results, stating, "The growth outcomes demonstrate the management's consistent operational direction focused on sustainable development rather than short-term expansion." The company is strengthening its financial foundation and improving governance efficiency while continuing to invest in core competencies in preparation for the next stage of growth.
Vietnam's Life Insurance Market Shows Reduced Decline Amid Recovery
This performance aligns with the recovery signals in the Vietnamese insurance market. According to a regular press conference held by the Ministry of Finance on June 17, the Vietnamese insurance market is showing signs of recovery following a crisis of confidence in the life insurance sector from 2022 to 2023. Pham Tu Phuong, Deputy Director of the Insurance Management and Supervision Department, stated, "The Vietnamese insurance market is particularly showing signs of recovery following the crisis of confidence in the life insurance sector."
The overall revenue of Vietnam's insurance market is estimated to have increased moderately in the first half of this year. The Ministry of Finance reported that total insurance market revenue is projected to have grown by about 2% in the first half of 2026. Among these, the non-life insurance sector is expected to increase by over 12%. In contrast, the life insurance sector is projected to decline by about 4%, although the pace of decline has significantly slowed.
The authorities are also accelerating improvements to the management system to support the recovery of the insurance market. The Ministry of Finance and regulatory authorities are speeding up digital transformation and enhancing inspections and supervision. They are also engaging in dialogue with insurance companies to address industry challenges and improve management efficiency, promoting sustainable market development.
Expectations for market recovery are linked to policy goals. With support measures from the Vietnamese government and the Ministry of Finance coinciding with a target of double-digit economic growth, the insurance market is expected to continue its recovery trend. Authorities believe that the gap between the target of increasing insurance premium income to 3.3% to 3.8% of GDP by 2030 will gradually narrow.
In terms of market evaluation, Hanwha Life Vietnam maintains a stable position. It has been listed in the "Top 10 Reputable Life Insurance Companies" for ten consecutive years, as reported by Vietnam Report this year. Given that life insurance contracts and coverage periods can extend for decades, maintaining a long-term ranking reflects operational stability, management capabilities, and service quality.
The sales network and consulting personnel are also becoming a core foundation of local operations. Currently, Hanwha Life Vietnam has over 41,300 financial planners and 135 customer service centers nationwide. The company is focusing on enhancing planner training, standardizing capabilities, and supporting consulting systems to help customers establish suitable coverage plans at different life stages.
Investment in digital technology is also being pursued as a key component of enhancing consulting competitiveness. In early May, Hanwha Life Vietnam launched the H-Planner application for financial planners. This app applies artificial intelligence to the insurance consulting process, connecting customers' coverage needs and financial planning from a life stage perspective into a single framework. It visualizes financial planning and risk scenarios, making the consulting process more transparent and understandable, and supports customers in making decisions aligned with their long-term goals.
The product portfolio is also expanding to meet changing customer demands. Hanwha Life Vietnam offers a variety of options, from health risk, accident, and critical illness coverage to products that combine protection and accumulation features. The "Prosperity Partner" product launched in April exemplifies this strategy, allowing customers to maintain coverage benefits until age 80 after paying premiums for just five years. Coverage benefits can reach up to 175% of the insured amount, and the cash value can equal the total premiums paid immediately after the payment period ends.
Hanwha Life Vietnam views its first-half performance as a stepping stone to strengthen its position in the local market. The company explained that improvements in financial capabilities, qualitative enhancements in the planner organization, product innovation, technological advancement, and enhanced customer experience have all been achieved together. As the entire insurance market is positioned within a trend of recovering trust and strengthened supervision, securing a foundation for sustainable growth is emerging as a key aspect of future competitiveness.
Meanwhile, Hanwha Life Vietnam, a subsidiary of Hanwha Group, has established its business foundation in Vietnam for 18 years. The company aims to provide protection and peace of mind at key life stages for customers, based on Hanwha Group's financial foundation, international management experience, and sustainable management philosophy.
* This article has been translated by AI.
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