Life insurance firm FWD Vietnam revealed a substantial increase in charter capital for July 2023, taking the total to a staggering VND19.102 trillion ($795.08 million) and solidifying its position at the vanguard of the Vietnamese life insurance market in terms of capital.
This recent capital infusion is projected to bolster the firm's delivery of simple, comprehensible products and services, underpinned by digital technology, to its client base, continually reshaping perceptions of insurance within Vietnam. It serves as a robust testament to FWD Vietnam's commitment to sustainable growth, longevity, and customer-centric practices.
The Vietnam Insurance Association's data unveils FWD currently holds the sixth position in the market in terms of new insurance premium revenue within the first half of 2023, boasting an income of $108.79 million, and securing a market share of 3.4 per cent.
A report from the Department of Insurance Supervision and Management under the Ministry of Finance, indicates that the total owner's equity of life insurance businesses at the end of 2022 was estimated at $5.23 billion, representing a 3.8 per cent increase compared to 2021.
In 2022, four life insurance businesses expanded their charter capital, with a total additional capital of $372.29 million. Specifically, AIA augmented its capital by $208.33 million), Dai-ichi added VND2.1 trillion $87.5 million, FWD increased by $66.04 million, and Phu Hung by $10.42 million.
In light of new regulations, the minimum charter capital requirements for both life and non-life insurance firms have been raised. As outlined in Article 35 of Decree No.46/2023/ND-CP, life and health insurance businesses must uphold a minimum charter capital of $31.25 million; those engaged in life, health, unit-linked or pension insurance must maintain a minimum charter capital of $41.67 million; and companies involved in life, health, unit-linked, and pension insurance need to ensure a minimum charter capital of $54.17 million.
Currently, all life insurance enterprises have charter capital exceeding $41.67 million, going beyond the requirements set by the new insurance business law. Companies with the highest charter capital within the life sector currently include Manulife, FWD, Sun Life, Dai-ichi Life, Generali, and others.
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