Sun Life Vietnam has been fined VND130 million (approximately $5,030) by Vietnam’s Ministry of Finance for violating regulations related to its universal life insurance product. The fine was imposed following a decision by the Insurance Supervisory Authority on December 12.
The insurer was found to have failed to adhere to the approved terms, rules, and premium structure of a product that was supposed to have a three-year premium payment period and a 10-year coverage period.
Additionally, the company was given a formal warning for providing misleading or unclear sales illustrations. The authority said these illustrations may have made it difficult for customers to make informed decisions.
Along with the financial penalty, Sun Life Vietnam has been temporarily suspended from signing new insurance contracts for 2.5 months. The company must take corrective action to ensure the product complies with the approved structure and regulatory guidelines.
Financial Struggles Continue
Sun Life Vietnam, a subsidiary of Canada’s Sun Life Assurance Company, reported a net loss of VND868 billion ($3.36 million) for 2024. This marks the company’s eleventh consecutive year of losses since it entered the Vietnamese market in 2013.
According to its financial report, the company’s insurance premium income totaled VND3.4 trillion ($131.4 million) in 2024, an 18.8% decrease from the previous year. Insurance operations expenses slightly increased to VND1.99 trillion ($77.27 million), while insurance payouts rose by nearly 35% to VND1.61 trillion ($62.2 million). As a result, the gross profit from insurance activities dropped 66%, reaching VND1.29 trillion ($50.06 million).
As of the end of 2024, Sun Life Vietnam reported accumulated losses of nearly VND6.36 trillion ($246 million), with total assets standing at VND20.79 trillion ($803.83 million). The company’s owner’s equity amounted to VND11.58 trillion ($447.6 million), and its liabilities totaled VND9.21 trillion ($356.17 million).
Company Overview
Sun Life Vietnam operates two branches, 25 sales points, and 24 agency offices across the country. In 2024, the company employed 590 people, spending VND421 billion ($16.27 million) on salaries and VND943 billion ($36.41 million) on agent bonuses.
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