Why Are Vietnamese Insurers’ Investment Returns Falling as Deposit Rates Rise?
In the first nine months of 2026, Vietnamese banks’ 12-month deposit rates rose year on year, but listed insurers’ annualized financial returns generally fell. At several firms, investment assets grew faster than profits, while the delayed effect of higher rates on existing deposits, changes in investment portfolios and rising financial costs weighed on returns.
In the first nine months of 2026, the average 12-month deposit rate at Vietnam’s state-owned commercial banks rose 101 basis points year on year to 5.69% annually; at other commercial banks, it rose nearly 75 basis points to 5.97%. Over the same period, the annualized financial return for listed non-life insurers fell from 5.05% to 4.83%, while that for reinsurers fell from 7.05% to 6.46%. Returns at Bao Viet Group (Tập đoàn Bảo Việt) and PVI Holdings also declined, to 4.49% and 5.56%, respectively.
Annualized financial returns generally declined across groups of listed Vietnamese insurers.（VietVance）
Average investment assets at MIC, ABIC, BSH and Bao Long grew nearly 11%, but financial profit rose just over 2%. The four companies’ annualized financial return fell from 5.77% to 5.32%. Existing term deposits continue to earn interest at their contracted rates; applicable rates take effect only when funds are newly deposited or renewed. Rates negotiated by companies may also differ from banks’ posted rates. Investments in bonds and stocks, along with related costs, also affect financial profit.
At the end of the third quarter of 2026, eight non-life insurers held VND 33.206 trillion in financial investments before impairment provisions, with deposits and certificates of deposit accounting for 81.8%. Non-deposit investments at MIC, ABIC, BSH and Bao Long grew about 62% year on year to VND 2.381 trillion, while the deposit share of their portfolios fell from 87.3% to 82.7%.
Company results diverged. MIC’s average investment assets grew 22%, but its financial profit fell 2.7%, bringing its annualized return down from 7.62% to 6.08%. ABIC’s financial profit rose 35.6%, and its return increased from 4.49% to 5.46%.
Financial investment returns diverged among 13 insurers.（VietVance）
Rising costs further squeezed investment returns at some companies. PVI Holdings’ financial revenue increased by VND 231 billion and its financial costs rose by VND 166 billion. Financial profit grew just 8.9%, below the 14.4% increase in average investment assets. Bao Viet Group’s financial profit rose 18.4%, also below the 20.6% increase in its average investment assets.
Source: VietVance
