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Hanwha Life posts first accumulated profits in Vietnam

Aug. 21, 2023 - 14:52 By Im Eun-byel
Hanwha Life CEO Yeo Seung-joo speaks at a ceremony celebrating the 15th anniversary of the Vietnamese arm of Hanhwa Life Insurance in Ho Chi Minh, Vietnam, Friday. (Hanwha Life Insurance)

The Vietnamese arm of Hanwha Life Insurance posted its first accumulated profits since its launch 15 years ago.

Marking the local unit’s 15th anniversary, the insurer held a ceremony in Ho Chi Minh City, Vietnam on Friday, where it unveiled its financial achievements.

Since posting a net profit for the first time in 2016, the Vietnamese subsidiary has recorded profits for nearly five consecutive years between 2019 and 2023. As of the first half of this year, its accumulated profits reached 161.5 billion Vietnamese dong ($6.7 million).

Largely buoyed by recent upbeat earnings, Hanwha said it aims to post pre-tax earnings of 100 billion won ($74.6 million) in Vietnam by 2030 and become one of the top five insurers there.

“We are the first insurance company to have completely solved accumulated losses since its overseas expansion solely based on domestic funds. This is an achievement of our own capability and know-how and the overall Korean financial system,” Hanwha Life CEO Yeo Seung-joo said during the ceremony.

The company said it is expanding localization efforts in Vietnam, with a total of 128 branches operating nationwide. Most of its 500 workers there are locally hired to better meet local demands.

The company added it is also ramping up efforts for digitalization. Vietnam is a young country with nearly 30 percent of its population aged between 15 to 29. Its mobile phone penetration rate reaches 149 percent, meaning some individuals own more than one phone.

To target the mobile-friendly market, the firm recently launched a mobile app named Lime for local consumers, allowing users to pay their insurance fees and check the terms of the guarantee on the app.