Manulife Vietnam Company Limited (Manulife) has just announced its separate interim financial report for the first 6 months of 2023.
Accordingly, in the first 6 months of this year, net revenue from insurance business activities decreased by 13% compared to the same period last year, reaching 11,090 billion VND.
Regarding insurance premium revenue, Manulife reached VND11,464 billion (down 11%), of which original insurance premium was VND11,427 billion.
Revenue from financial activities increased by 6% to VND2,543 billion. Other income also increased sharply by 71% to VND1,550 billion.
In addition, Manulife reduced financial operating expenses by 73% compared to the same period, to VND305 billion.
Pre-tax profit in the first 6 months of the year of this life insurance company decreased by 29% compared to the same period, reaching 2,434 billion VND.
The main reason for the decline in profits was that Manulife's total compensation and insurance payments in the first 6 months of the year skyrocketed to more than VND8,800 billion, equivalent to a 45% increase over the same period.
Notably, in the compensation and insurance payment section of Manulife, there is an expense of more than VND 1,511 billion for the content of "contract cancellation". This expense increased 3.8 times compared to the same period last year.
This “abnormality” can be explained by the fact that Manulife had to resolve requests to cancel contracts and compensate customers after a series of violations by agents, typically insurance contracts signed through SCB Bank.
Meanwhile, commission payments to agents decreased by 43% to VND911 billion due to a decline in revenue.
This Canadian insurance company also recorded financial operating profit of more than VND2,200 billion, a sharp increase of 76% over the same period.
As of June 30, Manulife had short-term bank deposits in USD equivalent to VND 1,016 billion and payment deposits (VND) of VND 1,481 billion.
The value of short-term investments also reached VND22,414 billion (a slight increase over the same period). Of which, stock investment was VND9,570 billion; government bonds were VND203 billion (interest rates from 8.8% to 15%/year); short-term deposits were VND11,251 billion (interest rates from 5.2% to 9.8%/year);...
Regarding long-term financial investments, Manulife is making long-term investments of VND 68,231 billion (an increase of more than VND 5,000 billion over the same period).
Of which, VND 83 billion was invested in Manulife Investment Vietnam Fund Management Company Limited (subsidiary); VND 68,149 billion was invested in government bonds, corporate bonds, and local bonds.
In addition, the company also has more than 590 billion VND in long-term bank deposits. This deposit has a term of 3 years to 30 years, with interest rates ranging from 2.1%/year to 11.8%/year.
Manulife Vietnam is known as the “champion” in employee benefits. In 2022, this insurance company will pay an average salary of up to 1 billion VND/year for each employee.
The recently released financial report shows that the company spent VND670 billion on employee salaries in the first 6 months of the year. The report did not disclose the specific number of employees working at the company. However, according to data released at the end of 2022, Manulife Vietnam had 1,153 employees.
If the number of employees remains unchanged, or changes insignificantly compared to the end of last year, the average salary each Manulife employee receives in the first half of 2023 will also reach VND 581 million/person, equivalent to VND 96.83 million/person/month.
Of course, this number is only for office staff, not agents who directly sell insurance to customers.
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