Bao Minh Insurance faces a qualified audit opinion on 156 billion VND in other receivables linked to employee fraud

Bao Minh Insurance’s 2025 audited financial statements, reviewed by PwC Vietnam, received a qualified opinion related to the “other receivables (short-term)” line, which totaled nearly VND 156 billion. The auditor said it could not obtain sufficient appropriate audit evidence regarding the recoverability of this amount, and therefore could not determine whether a provision for unrecoverable receivables was necessary.

Qualified opinion tied to fraud-related receivable

In its management explanation signed by CEO Vu Anh Tuan, Bao Minh Insurance said the asset is a residual item arising from a fraud incident involving an employee that affected the company’s payment account at a domestic bank. The case is currently under investigation, with authorities’ decisions pending.

The company stated it has filed a report with the police and is pursuing the necessary legal procedures to clarify accountability of the relevant entities and individuals and to protect legal rights. Because the matter is under investigation, PwC Vietnam said it could not obtain evidence related to recoverability and thus could not conclude on whether a bad debt allowance should be recorded.

Business performance in 2025

Despite the audit qualification, Bao Minh Insurance reported growth in premium revenue in 2025. Total revenue from insurance premiums reached VND 6,651.9 billion. Net premiums earned from direct business contributed VND 5,966 billion, while reinsurance premiums earned were over VND 805 billion.

Claims payments, however, declined. Net claims paid fell sharply to VND 1,550.9 billion, down about 10.2% year-on-year.

Profit and balance sheet scale

Gross profit from insurance operations reached over VND 325.8 billion, up 28.9% year-on-year. Net income after tax for the year was over VND 257 billion.

Equity exceeded VND 2,927 billion, while total assets reached VND 7,676 billion.

Receivables under insurance contracts and overdue amounts

As of 31 December 2025, total receivables under insurance contracts were nearly VND 866 billion, up about 23% versus 2024. The overdue balance exceeded VND 530 billion.

In addition to contract receivables, Bao Minh recorded other short-term receivables of more than VND 491.1 billion, after provisioning more than VND 143.5 billion.

Assets awaiting disposition and additional audit qualification

The “assets awaiting disposition” line increased sharply to VND 155.9 billion from VND 31.2 billion a year earlier. PwC Vietnam indicated this is the same item for which it could not obtain full evidence to assess recoverability, contributing to a qualified opinion on this line as well.

Overdue receivables and estimated recoverability

As of 31 December 2025, the total value of overdue receivables under Bao Minh’s insurance contracts rose to VND 731.7 billion, up from VND 541 billion in 2024. Of this amount, receivables under insurance operations accounted for VND 530 billion, with the remainder classified as other overdue receivables.

The estimated recoverable amount was VND 400.8 billion, representing about 55% of total overdue debt. The remaining balance was provisioned up to VND 330.9 billion.

Previously disclosed compliance issues

In the audit findings, PwC Vietnam also referenced certain issues previously disclosed, including failures to directly advise customers or guide procedures in the process, and not ensuring the quality of advisory for linked insurance products. The audit also noted inaccurate advice on investment-linked products.

Bao Minh Insurance said it will continue to cooperate with authorities, monitor developments, and provide updates in subsequent financial statements regarding the fraud-related matter.