BVH released its consolidated H1 2026 results with a gross written premium of VND22.7tn (USD864mn; +3.0% YoY) and PBT of VND2.3tn (USD87mn; +34.5% YoY), both achieving 48% of our respective FY2026 forecasts. This implies Q2 2026 PBT of VND1,283bn (+27.5% QoQ; +50.1% YoY). Overall, the company’s earnings exceeded our expectations, driven by the sharp reversal of a minimum guaranteed rate reserve and robust financial income.
- Non-life insurance continued to be the growth engine. H1 2026 life and non-life direct premiums reported at VND16.1tn (-3.3% YoY) and VND6.3tn (+18.2% YoY), respectively, with a similar mix in Q2 2026 (life -2.5% YoY; non-life +17.7% YoY). Per our discussion with the company, the life segment's muted performance continues to reflect the industry's slow recovery from the bancassurance crisis, compounded by an industry-wide contraction in life GWP amid the high interest rate environment — headwinds that we expect to persist through H2 2026.
- Total claims and reserves H1 2026 declined 2.6% YoY to VND16.8tn, mainly driven by a lower level of math reserve expenses of VND7.3tn (-10.9% YoY) and a sharp reversal on the guaranteed interest rate reserve of VND2.4tn (+295% YoY). We believe this continues to reflect the positive impact of higher Government bond yields on the company’s technical discount rate level and BVH’s interest rate commitment with its clients in investment-linked products. Claim expenses nonetheless remained elevated, which we believe could be partly due to the high interest rate environment discouraging clients from paying annual premiums and policy terminations rising. The company also stated that, for fully-paid or 10-year-plus policies where accumulated surrender value has reached breakeven, clients often chose to cash out rather than maintain coverage.
- Net financial income grew 17.0% YoY to VND6.2tn in H1 2026 (Q2 2026: VND3.2tn, +18.5% YoY), underpinned by a 26.5% YoY increase in gross financial income to VND8.4tn. This was partially offset by a 63.4% YoY jump in financial expenses to VND2.2tn, consistent with BVH's significantly expanded repo and bond borrowing position flagged in Q1 2026. The strong financial income performance reflects the favorable interest rate environment in H1 2026 as well as the ongoing scale-up of BVH's investment portfolio.
BVH’s consolidated H1 2026 results
VND bn | H1 2025 | H1 2026 | YoY | Q2 2025 | Q2 2026 | YoY |
Direct premium | 21,978 | 22,402 | 1.9% | 11,226 | 11,465 | 2.1% |
of which - Life | 16,661 | 16,119 | -3.3% | 8,666 | 8,452 | -2.5% |
of which - Non-life | 5,316 | 6,283 | 18.2% | 2,560 | 3,013 | 17.7% |
Inward reinsurance premium | 83 | 321 | 284.4% | 36 | 56 | 54.3% |
Gross written premium | 22,061 | 22,723 | 3.0% | 11,262 | 11,520 | 2.3% |
Outward reinsurance premium | (1,825) | (2,314) | 26.8% | (876) | (1,160) | 32.4% |
Net written premium | 20,237 | 20,409 | 0.9% | 10,387 | 10,361 | -0.2% |
Unearned premium reserve | 15 | (368) | -2576.1% | 80 | 86 | 7.7% |
Net earned premium | 20,252 | 20,041 | -1.0% | 10,466 | 10,447 | -0.2% |
Other premiums earned | 383 | 482 | 25.8% | 194 | 257 | 32.1% |
Claims and reserves | (17,216) | (16,772) | -2.6% | (8,906) | (8,435) | -5.3% |
of which - math expense | (8,145) | (7,257) | -10.9% | (3,793) | (4,312) | 13.7% |
Underwriting expense | (3,302) | 59) | 7.8% | (1,704) | (2,005) | 17.6% |
G&A expense | (3,780) | (4,147) | 9.7% | (1,962) | (2,232) | 13.7% |
Operating income | (3,651) | (3,963) | 8.5% | (1,900) | (1,976) | 4.0% |
Financial income | 6,664 | 8,430 | 26.5% | 3,484 | 4,440 | 27.4% |
Financial expenses | (1,368) | (2,234) | 63.4% | (751) | (1,202) | 60.2% |
Net financial income | 5,296 | 6,196 | 17.0% | 2,733 | 3,238 | 18.5% |
Income from affiliates | 48 | 50 | 4.7% | 26 | 21 | -17.6% |
Other income | 9 | 5 | -38.6% | 3 | 2 | -24.6% |
PBT | 1,702 | 2,289 | 34.5% | 855 | 1,283 | 50.1% |
Income tax expenses | (311) | (426) | 37.1% | (151) | (236) | 56.7% |
NPAT | 1,391 | 1,863 | 33.9% | 704 | 1,047 | 48.7% |
Minority interest | 42 | 31 | -26.0% | 28 | 15 | -45.8% |
NPAT-MI | 1,349 | 1,831 | 35.8% | 677 | 1,032 | 52.5% |
Loss ratio | 41.2% | 37.7% | -3.6 ppts | 44.2% | 43.9% | -0.3 ppts |
Expense ratio | 63.9% | 58.3% | -5.6 ppts | 66.1% | 67.5% | 1.3 ppts |
Combined ratio | 105.1% | 95.9% | -9.2 ppts | 110.4% | 111.4% | 1.0 ppts |
Source: BVH, Vietcap. (*) Loss ratio, expense ratio, and combined ratio here refer to the non-life business only.
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