Prudential Vietnam Life Insurance posts 2025 net profit up nearly 50% as investment income rises and deposits grow

Prudential Vietnam Life Insurance Company Limited (Prudential) has released its 2025 financial statements, reporting a sharp rise in profitability despite a decline in insurance revenue. In 2025, the company posted pre-tax profit of VND 4,937 billion, up 48% from VND 3,339 billion in 2024. Net profit reached VND 3,870 billion, increasing about 41% from VND 2,737 billion the previous year.

Profit growth driven by financial income and lower selling costs

Prudential said the improvement was mainly supported by financial activities and cost reductions in selling expenses. Financial revenue totaled VND 8,664 billion, up 2% year-on-year. Interest income increased 2%, with deposit income rising 11.3%, while interest from bonds declined 1.5%.

Gains from the disposal of investments surged 68% to VND 2,422 billion and became the main offset to the year’s growth. In contrast, gains from fair value changes of investment portfolios fell 47%, indicating less favorable market conditions compared with 2024.

Operating expenses: selling expenses fall, administrative costs rise slightly

On the cost side, selling expenses dropped sharply from VND 3,459 billion to VND 1,823 billion. The company noted this was a key factor supporting profitability even as insurance revenue declined. Administrative costs increased slightly to VND 3,005 billion.

Insurance business: premiums down, claims exceed premiums

In Prudential’s core insurance operations, net insurance premiums decreased by about 16% to VND 19,569 billion. Total claims and benefits paid were VND 20,474 billion, resulting in a gross loss from the insurance business of VND 1,583 billion, though this loss narrowed compared with 2024.

Balance sheet: assets near VND 199 trillion

By the end of 2025, Prudential’s total assets reached VND 198,855 billion, up nearly VND 10,000 billion from the beginning of the year. Total financial investments were nearly VND 178,500 billion, including VND 138,229 billion in long-term investments and VND 40,242 billion in short-term investments.

Investment allocation: government bonds and deposits remain key

Within the long-term portfolio, funds were primarily allocated to government bonds and government-guaranteed bonds, totaling over VND 74,500 billion, continuing to be the largest asset class. Corporate bonds were valued at VND 16,488 billion, slightly lower than at the start of the year.

Long-term deposits and certificates of deposit rose sharply to VND 44,859 billion, up more than VND 7,500 billion year-start. In short-term financial investments, the company’s balance reached VND 40,242 billion, higher than VND 36,023 billion at the beginning of the year.

Investments in listed securities and UPCoMs accounted for VND 22,552 billion, up from VND 19,100 billion at end-2024. Prudential also held roughly VND 9,300 billion in short-term deposits, bringing total cash deposits to VND 54,159 billion.

Funding structure: liabilities dominate, equity rises

On sources of funds, Prudential’s liabilities stood at VND 168,612 billion, representing about 85% of total capital. Most long-term liabilities came from insurance technical reserves totaling VND 155,299 billion. Short-term liabilities were VND 13,238 billion.

By year-end 2025, equity increased to VND 30,243 billion from VND 26,373 billion at the start of the year. Undistributed profits were VND 21,776 billion.