AM Best maintains stable outlook on Vietnam's non-life insurance sector

In a market segment report released on July 26, the global credit rating agency said Vietnam's positive macroeconomic performance has been underpinned by buoyant electronics exports and increasing foreign direct investment, driven by the global investment boom in AI-related technology and infrastructure. Strong macroeconomic fundamentals and increased government expenditure continue to drive commercial insurance demand and support operating earnings, despite increasing competition.

“Vietnam’s non-life market has been attractive to foreign insurance groups and domestic financial conglomerates seeking growth and diversification. As market competition intensifies, insurers’ underwriting discipline faces challenges from these new entrants and incumbents seeking growth,” said Ken Lau, senior financial analyst of AM Best.

According to the report, operating earnings in 2025 exhibited a strong recovery from the prior year, due in large part to favourable underwriting earnings as the market recovers from the impact of Typhoon Yagi in 2024. Vietnam’s non-life insurance market also showed strong top-line growth in 2025, and the positive trend extended into the first half of 2026.

AM Best expects the market’s overall operating performance to remain resilient, underpinned by stable investment returns and positive underwriting results, along with easing reinsurance market conditions.

“Non-life insurers in Vietnam continue to benefit from ample reinsurance capacity and more favourable renewal terms in 2026 and are increasingly well-positioned to optimise their reinsurance programmes to protect against the potential impact of severe catastrophic events,” said Chris Lim, director of AM Best.

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