January 20, 2022 | 17:03 GMT+7

SSI forecasts 2022 insurance revenue

Phuong Hoa - Vũ Phong -

Both good and bad factors expected to have an impact on revenue this year.

Photo: Illustration
Photo: Illustration

Revenue and business activities in the insurance industry are forecast to experience both positive and negative factors during 2022, according to Saigon Securities Incorporation (SSI).

Premium revenue is expected to be positive as the economy reopens and sales recover. Life insurance premium revenue in 2022 is estimated to increase 22-24 per cent, with non-life premiums to rise 8-10 per cent. Total premium revenue is forecast at VND256 trillion ($11.27 billion), up 18-20 per cent compared to 2021.

Factors contributing to premium revenue growth include electronic insurance certificates (e-insurance) gradually legalizing other insurance products, and cooperation between insurance companies to enhance innovation in big data analysis and diversify products and distribution channels.

Due to the high expectations over revenue in 2022, the valuation of insurance stocks will likely increase, while plans to issue new shares this year may still have a positive impact on stock prices in the sector.

However, there will some lingering effects on the insurance businesses in 2022, from Covid-19,

Revenue and business activities in the insurance industry are forecast to experience both positive and negative factors during 2022, according to Saigon Securities Incorporation (SSI).

Premium revenue is expected to be positive as the economy reopens and sales recover. Life insurance premium revenue in 2022 is estimated to increase 22-24 per cent, with non-life premiums to rise 8-10 per cent. Total premium revenue is forecast at VND256 trillion ($11.27 billion), up 18-20 per cent compared to 2021.

Factors contributing to premium revenue growth include electronic insurance certificates (e-insurance) gradually legalizing other insurance products, and cooperation between insurance companies to enhance innovation in big data analysis and diversify products and distribution channels.

Due to the high expectations over revenue in 2022, the valuation of insurance stocks will likely increase, while plans to issue new shares this year may still have a positive impact on stock prices in the sector.

However, there will be some lingering effects from Covid-19 on the insurance business in 2022. Insurers are expected to outlay large sums to indemnify policyholders, which are likely to dampen profits.

SSI noted that negative factors may affect net profits in the insurance business to a greater extent. Positive factors, meanwhile, will need time to have an effect on profits.