Prudential Vietnam reaffirms sustainable growth goals in 2020

Prudential secured sustainable growth and efficient business operation in 2020

In 2020, Prudential achieved a total revenue of VND33.97 trillion ($1.48 billion), of which net revenue from insurance activities reached VND24.71 trillion ($1.1 billion), an increase of 12.6 per cent from the previous year. Meanwhile, new business revenue reached VND5.48 trillion ($238.26 million), an increase of 8.7 per cent. In response to the impact of the pandemic, Prudential Vietnam made timely adjustments to its operations including applying new ways of working and optimising costs, resulting in a rise in its pre-tax profit to VND2.79 trillion ($121.3 million).

In 2020, Prudential Vietnam maintained a solvency margin of almost 140 per cent, underscoring its ability to safeguard customers’ finances. The strong results also underscore Prudential’s continued strengths in its insurance business. The company reported total assets of VND124.28 trillion ($5.4 billion), an increase of 19.7 per cent from 2019, while its total investment capital in the economy was VND112.21 trillion ($4.88 billion), an increase of 19.5 per cent.

The year 2020 continues to see efficiency in investment activities. All six PRUlink funds of Unit-linked products achieved good returns amid the unfavorable economic climate. Under the fund manager Eastspring Investments, the asset management arm of Prudential, PRUlink Vietnam Equity Fund achieved the highest return rate with 16.4 per cent (after deducting the fund management fee), followed by PRUlink Growth Fund, PRUlink Balance Fund, and PRUlink Stable Fund with 16.0, 14.7, and 12.5 per cent, respectively. Similarly, Prudential Vietnam’s Universal life fund also continued to generate a good return from 5.0 to 6.5 per cent in 2020 (after deducting fund management fee).

Customer-centric strategy with total insurance benefits payments accounting for 30 per cent of the industry

Continuing its mission to provide financial protection for Vietnamese families, Prudential Vietnam paid more than VND6.77 trillion ($294.35 million) in insurance benefits, an increase of 8.1 per cent from 2019, and accounting for nearly 30 per cent of the total benefit payments of the whole industry last year.

In the past year, Prudential Vietnam rolled out several initiatives to digitalise its processes and further enhance the customer experience. All customer touchpoints from consultation and underwriting to claims submission were digitalised to ensure the customer experience is safe and thorough, especially during the pandemic. Nearly 100 per cent of insurance applications and more than 70 per cent of claims were submitted online in 2020.

In May 2020, as a part of its efforts to leverage digital technology to make healthcare more accessible and affordable for everyone, Prudential Vietnam launched its AI-powered health and wellness app, Pulse by Prudential. As the first app of its kind to offer holistic health management, Pulse serves as a 24/7 partner to users, empowering them to take control of their personal health and wellbeing anytime and anywhere. As of the end of March 2021, Pulse had been downloaded over four million times in Vietnam and continues to evolve with new, value-added features, and functions.

In 2020, Prudential Vietnam continued to garner recognition from the industry and was ranked second among the Top 10 Brands with Best Customer Experience 2020, based on a customer experience survey conducted by KPMG.

In 2020, Prudential continued to demonstrate its commitment to the sustainable development of communities by rolling out activities in three core areas – education, health, and safety, bringing its total community investment budget from 2011 to 2020 to more than VND205 billion ($8.9 million).

For the health pillar, Prudential Vietnam focused on joining hands with the entire nation to fight the pandemic in 2020. Beyond providing necessary medical equipment, medical masks, and antibacterial hand sanitiser to 14 COVID-19 frontline hospitals as well as giving rice and necessities to disadvantaged households in Central Vietnam. Prudential Vietnam also implemented the "Rice ATM - Giving love" programme to support similarly disadvantaged households in several provinces across the country.

For the pillars of education and safety, Prudential Vietnam also demonstrated its investment in students. More than 2,100 students in Bac Giang and Dak Lak provinces were not only equipped with standard helmets but also trained on road safety knowledge and skills through the SAFE STEPS programme. In addition, Prudential Vietnam implemented the Cha-Ching Curriculum to instill key money management skills in children across 72 primary schools.

Phuong Tien Minh, chief executive officer of Prudential Vietnam, said: “Prudential Vietnam’s top priorities continues to be the health and wealth of our customers while maintaining efficient business operations and sustainable growth. With our strategic initiatives on product diversify, strong investment in technologies, people and the sustainable development of the community, Prudential Vietnam always reinforces our core purpose of helping the Vietnamese people get the most out of life."