Vietnam’s Non-Life Insurance Segment Set For Stable Outlook - AM Best

KUALA LUMPUR, July 27 (Bernama) -- Global credit rating agency, AM Best has maintained its stable outlook on Vietnam’s non-life insurance segment, citing robust demand, technology adoption and healthy macroeconomic factors.

The Best’s Market Segment Report states that the country’s positive macroeconomic performance has been underpinned by buoyant electronic exports and increasing foreign direct investment, driven by the global investment boom in artificial intelligence-related technology and infrastructure.

AM Best in a statement added that strong macroeconomic fundamentals and increased government expenditure continue to drive commercial insurance demand and support operating earnings despite increasing competition.

“Vietnam’s non-life market has been attractive to foreign insurance groups and domestic financial conglomerates seeking growth and diversification. As market competition intensifies, insurers’ underwriting discipline faces challenges from these new entrants and incumbents seeking growth,” said AM Best senior financial analyst, Ken Lau.

According to the report, operating earnings in 2025 showed a strong recovery from the previous year, due largely to favourable underwriting earnings as insurers recovered from the impact of Typhoon Yagi in 2024.

Vietnam’s non-life insurance market also recorded strong top-line growth in 2025, with the positive trend continuing into the first half of 2026.

The credit rating agency expects the market’s overall operating performance to remain resilient, supported by stable investment returns, positive underwriting results and easing reinsurance market conditions.

AM Best said its outlook on Vietnam’s non-life segment will be highlighted at the Vietnam Insurance Summit on July 31, in Da Nang, Vietnam, and AM Best’s Singapore operations managing director and chief executive officer, Rob Curtis, will be in attendance and available for meetings.

-- BERNAMA