CASE STUDY: PRUDENTIAL VIETNAM
ASSURANCE PRIVATE LIMITED COMPANY
Class: HM1601
Subject: Business Environment - ECO102
Instructor: Nguyen Thi Thanh Nhan
Group 2:
Nguyen Hoang Khanh Loan ー SA150079
Thai Tran Thao My ー SA150129
Ho Nhu Nhat Ky ー SA150078
Huynh Nguyen Cong Toai ー SA150128
Dinh Nguyen Cong Triet ー SA150104
Pham Hoang Gia Bao ー SA150122
1
Table of Contents
1. Introduction 3
2. Analysis 5
2.1. Total asset and total employee 5
2.2. Organization structure 6
2.3. Business sectors 7
2.4. Demand and Supply 7
2.5. Shortage or surplus 8
2.6. Revenue, Cost, Profit 9
2.7. Competitors 10
2.8. Market structure 10
2.9. Macroenvironment 一 PESTEL Framework 11
3. Conclusion 12
References 13
2
1. Introduction
VNR500 rating 36 (B1/2021)
Tax code 0301840443
Stock code None
Head office Floor 25, Saigon Trade Center Building,
37 Ton Duc Thang Street, Ben Nghe
Ward, District 1, HCMC
Tel. 028-39101660
Fax 028-39100899
Website www.prudential.com.vn
Year of the establishment 01/01/1999
(Source: VNR500, 2022)
Table 1. General Introduction
3
History
Introduced in Vietnam starting around 1995 and formally put into activity in 1999 with the
message "Always listen. Always understand", Prudential is giving monetary security and
speculation answers for increment resources really for more than 1.6 million clients with a
group of in excess of 230,000 expert specialists, 360 General Agent workplaces, exchange
workplaces, and client support focuses in 63 territories and urban communities the nation
over, with an organization of 8 trustworthy accomplice banks and an emergency clinic
charge ensure framework at in excess of 366 medical clinics and facilities. Prudential is
likewise a trailblazer in applying present day innovation to work on processes, further
develop client experience and backing the local area on their excursion to dominating their
own wellbeing and life. For the year 2021, Prudential has acquired the all out resource of 6,0
billion USD (141,1 trillion VND), and the organization's income was 1,6 billion USD (39,1
trillion VND).
Achievements
Prudential Vietnam Assurance Private Ltd. has won the International Life Insurer of the Year
- Vietnam and New Insurance Product of the Year - Vietnam grants at the Insurance Asia
Awards 2021. The insurance agency brought back home the awards for the third and second
a very long time in succession, separately. The Insurance Asia Awards accumulates Asia's
driving insurance agencies and perceives their extraordinary drives, items, and
arrangements. Starting around 2016, north of 130 insurance agencies from 30 nations have
been regarded with this lofty honor. Autonomous experts from major monetary and
inspecting firms like Milliman, Deloitte, PwC, and Ernst and Young were individuals on the
jury. The passing judgment on board of the Insurance Asia Awards 2021 said: "PRU-Health+
is an interesting, market-changing protection item that champions comfort without
compromising inclusion. Prudential additionally keeps on being a good example of Vietnam's
backup plans, supporting development while likewise raising its exhibition amid adverse
consequences achieved by the COVID-19 pandemic.
Missions & Vision
Prudential Vietnam’s sole mission is to help everyone to achieve the best things in life.
Prudential offers affordable, thorough healthcare solutions, finance protection and advice,
while giving people counsel to plan their savings for life goals. Moreover, Prudential's vision
is to be the top Non-life insurance company for Vietnamese households.
4
2. Analysis
2.1. Total asset and total employee
Being challenged by the unpredictable situation of the Covid-19 pandemic in 2021,
Prudential Vietnam still can maintain the position as one of the best company in the
insurance industry with the highest goal is to prolong sustainable development, expand the
development of the economy, take action for the health and prosperity of the customers, as
well as invest in charity and community activities to realize the company’s commitment is to
support their customers achieve the best things in life. As a result, the total assets of
Prudential Vietnam in 2021 reached 6.0 billion USD (141.15 trillion VND) , which increased
15.4 percent compared to the previous year. This achievement was achieved by the unity of
the executive committees, all of more than 230.000 labors, including 1507 permanent
employees with over 360 offices around 63 provinces in Vietnam always ready to serve more
than 1.6 million customers nationwide.
Figure 2.1 Total asset of Prudential Vietnam Assurance Private Limited Company
5
2.2 Organization Structure
Figure 2.2 Prudential Vietnam Assurance Private Limited Company’s structure
Prudential Vietnam Assurance Private Limited Company established the first office in Hanoi
in 1995. After 27 years of operation and development, Prudential Vietnam became a large
business, pursuing to the Decree No. 9/2018/ND-CP dated March 11th of the Government,
with more than 230.000 financial consultants including 1.507 permanent employees, and this
company owned 360 offices in over 63 provinces of Vietnam.
6
2.3 Business sectors (Primary sector // Secondary sector // Tertiary sector)
Prudential is one of the top financial corporations in the world which specializes in providing
life insurance products, financial services. In addition, Prudential is a corporation that has a
long business history, sustainable development, commitment to long-term, safe and effective
investment. In Vietnam, Prudential’s tertiary business sector is to provide health - caring,
health - protection plans which help users to enjoy lives, protect them from unexpected
accidents or deadly diseases. More specific, there are nine total health-care plans that are
available for customers.
Additionally, Prudential also provides financial services for investment as well as earning.
For the investment and earning plan, the combination of insurance and investment solutions
will provide a solid financial foundation in the face of uncertainties in life as well as bring an
effective financial protection and savings plan to realize customers’ dreams and future plans.
The video attached below is the overall information about Prudential Viet Nam and their
mission statements: https://www.youtube.com/watch?v=XPEROdXaDhE
2.4 Demand and Supply
Since the worldwide outbreak of Covid-19, the mindset about health and life of the
Vietnamese have been changed, people nowadays are more likely to pay attention to their
health than before the pandemic. According to research information from YouGov (a
well-known research company from the UK), the prolonged COVID-19 pandemic has made
Vietnamese consumers consider buying and using private insurance services more. The
impact of COVID-19 on economic, social and health activities has made consumers
particularly interested in health, insurance and life policies in an effort to protect themselves
and their families. Another YouGov survey showed that 26% of Vietnamese consumers said
they increased the frequency of buying insurance products during the fourth wave of
COVID-19 compared to before. This trend opens up new opportunities for insurance
providers in Vietnam.
Additionally, YouGov’s Banking & Insurance Rankings illustrate that Prudential Vietnam
ranked 2rd and 3rd with 6,3 total score. In 2021, Prudential has paid more than 367.34
million USD (8.6 trillion VND) of insurance benefits to customers, up 37.6% over the
previous year, accounting for about 26% of total market payments, fulfilling commitments to
customers and being a fulcrum of solid finances for more than 1.6 million families in
Vietnam.
7
2.5 Shortage or surplus
Prudential Vietnam sold insurance specifically for Covid-19 related health issues and have
helped many cases with the total amount paid of 434,875 USD (10.2 billion VND). Prudential
Vietnam did not clarify the money earned from insurance concerning Covid 19 but 2021 was
a very successful year for Prudential. According to Prudential Vietnam's 2021 financial
statements, the business saw excellent growth despite changes in the external market, most
notably from the result of the Covid 19 pandemic. Indicated by a 15.2% increase in total
revenue to 1.7 billion USD (39,2 trillion VND).
Prudential Vietnam paid out more than 367.2 million USD (8.6 trillion VND) in insurance
benefits to consumers in 2021, an increase of 37.6%, highlighting the company's dedication
to providing more than 1.6 million customers in the nation with access to health and financial
protection. 26% of the total industry claim payouts were made up of benefits that were
actually paid out.
Overall, 2021 was very favorable for Prudential Vietnam and they did not suffer from
shortage or surplus.
8
2.6. Total Revenue, Cost, Profit
Figure 2.3 Financial Report of Prudential Vietnam (2021)
2.6.1 Total Revenue
● 2020: 1,448,439,905 USD (33,973,184,000,000 VND)
● 2021: 1,669,226,945 USD (39,151,748,000,000 VND) (increase 12.5%)
⇒ Total revenue of Prudential rose by 12.5% in 2021 with 1.7 billion USD compared to 2020
(1.4 billion USD). Despite the heavy attack of the pandemic on the economy, the company
managed to conserve its foothold in the market, while making efforts to support its
customers in need and the whole society in general. They were able to maintain their annual
revenue growth rate (around 10-20%) and make profits. Nevertheless, their sundry income
saw a rapid decrease by 77.3%.
9
2.6.2 Total Cost
● 2020: 1,329,150,080 USD (31,175,239,000,000 VND)
● 2021: 1,647,183,006 USD (38,634,707,000,000 VND) (increase 23.9%)
⇒ Total cost also increased by 23.9% with 1.6 billion USD in 2021 compared to 2020 (1,3
billion USD). Due to such high demand for health insurance during the Covid-19 pandemic in
treating patients, the company had to spend more expenses in insurance, with a sharp
increase by 26,9%, about 279,1 million USD. Since they mainly focused on the insurance
and financial activities, their sundry cost was really low (54,3 thousand USD).
2.6.3 Total Profit (before tax)
● 2020: 119,289,825 USD (2,797,945,000,000 VND)
● 2021: 22,043,939 USD (517,041,000,000 VND) (decrease 81.5%)
⇒ As a result of the much higher increase in total cost compared to that in total revenue, the
total profit (before tax) of Prudential Vietnam dropped drastically by 81.5 %, from about 119.3
million USD in 2020 to 22.1 million USD in 2021. Notably, the reason for the decline,
according to their annual report, may be because they attempted to support for people by
donating 213,1 thousand USD to the Covid-19 Vaccine Fund, and 511,6 thousand USD to
many locals all over the country, aside from the dramatical effects of the pandemic on the
company.
2.7. Competitors
Although still leading the life insurance market in terms of both revenue and market share,
Prudential Vietnam is facing stiff competition from both old and potential companies .
In 2021, statistics from the Insurance Association of Vietnam (IAV) show that, the total
insurance premium revenue of the whole market is estimated at 159,458 billion VND, up
22% compared to the previous year. The largest market share Bao viet, accounts for 21.4%,
then second is Prudential Vietnam, with VND 1,308 billion, accounting for 18.8% market
share and Manulife is VND 440 billion, accounting for 14.3%.
It can be said that the most formidable competitor of Prudential Vietnam today is Bao Viet
Life, with a new mining market share that is closely following Prudential. Next is Manulife
Vietnam and AIA Vietnam. Because Bao Viet is a domestic company, it is easy to attract
Vietnamese customers, but Prudential believes that, with the resources, strength and
prestige from a multinational company, they will soon regain 1st place like before.
10
2.8. Market structure
Prudential Insurance is a monopolistic competitor due to the following reasons. There are
many insurance companies in Vietnam that sell similar products in the insurance market
namely life insurance, health insurance, property insurance, etc. The products are similar but
there are slight differences between each companies’ products. For example, the price of
insurance for Dengue fever that Prudential Vietnam and other insurance companies sell is
around 2- 4 USD/year (50,000- 80,000 VND/year) but the insurance benefit is different
between each company. Prudential’s basic insurance plan pays for 213,5 USD (5,000,000
VND) while TCA’s equivalent plan only pays for 128.1 (3,000,000 VND) and VBI’s plan pays
for 85.4 USD (2,000,000 VND). Furthermore, how one can get their insurance money is also
different between each company.
2.9. Macroenvironment 一 PESTEL Framework
2.9.1 Political Environment
Political factors may have an impact on the long-term profitability of Prudential Insurance
Vietnam Co. Ltd. Firstly, Prudential Vietnam achieved political stability and people's
recognition with the establishment in Vietnam from 1995. Prudential is also recognized when
it has won a noble title from the Government of Vietnam. Finally, Prudential Vietnam has
followed financial regulations while organizing events.
2.9.2 Economics Environment
According to figures from the Ministry of Finance as of July 2021, the insurance industry's
GDP was a shining spot of the economy during the previous pandemic period, with the
average growth rate of total revenue exceeding 20%. It proved that Vietnamese were aware
of the demand of health insurance and its vital necessity for their health. As a result, the firm
now has a chance to grow.
2.9.3 Social Environment
Prudential Vietnam always tries to understand their customers and offer the best solutions to
them. Prudential has stated some social factors that caused a great effect such as the
influence of occupation on the insurance policy, health, environmental consciousness and so
on. Notably, today, Vietnamese society frequently chooses higher-quality goods and
services. Life insurance is considerably more efficient compared to health insurance.
Therefore, it gives a chance for life insurance to flourish.
11
2.9.4 Technological Factors that Impact Prudential Vietnam Assurance Private
Limited Company
Currently, businesses impose a strong importance on technology. Artificial intelligence (A.I.)
especially has been included into the activities of Prudential Insurance Vietnam Co.Ltd. The
benefits include avoiding mistakes in work, increasing productivity by handling clients’
problems faster, and enhancing the client experience.
2.9.5 Environmental Environment
The health of humans has been significantly impacted by other factors. Prudential Vietnam
has proposed 3 factors - infectious diseases, contaminated food, and air pollution. Those
factors heavily damaged the ecosystem and human’s health. Due to the fact that insurance
is currently a need, there is a rise in demand for it. It gives the insurance market of
Prudential Vietnam a chance to develop.
2.9.6 Legal Environment
With a certain success, Prudential Insurance Vietnam Co. Ltd has introduced legal factors to
protect the rights of the company and the individuals (or organizations) purchasing
insurance. Moreover, they made a statement that they would not hold any responsibility for
mistakes such as during the data entering procedure and so on. Prudential Vietnam also
registered copyright and trademark rights.
3. Conclusion
With the motto "people are the foundation" and consistent action strategy, Prudential
Vietnam is always recognized in the top 50 largest companies in Vietnam in general and the
top 3 insurance companies specifically. Prudential Vietnam will grow up day by day to
embrace the economy and provide the Vietnamese with good values. "Listen. Understand.
Act" - slogan of Prudential, affirms the company’s commitment to always centralize their
customers.
12
References
[1] Prudential Vietnam. (n.d.). Tìm hiểu về Prudential Việt Nam | Prudential Việt Nam. Retrieved July
19, 2022, from https://www.prudential.com.vn/vi/tim-hieu-ve-prudential-viet-nam/lich-su-phat-trien/
[2] Vietnamnews. (2021, August 16). Prudential Vietnam wins International Life Insurer of the Year at
Insurance Asia Awards 2021. Retrieved July 19, 2022, from
https://vietnamnews.vn/economy/1013246/prudential-vietnam-wins-international-life-insurer-of-the-yea
r-at-insurance-asia-awards-2021.html
[3] Prudential Vietnam. (2022, March). Báo cáo kết quả kinh doanh 2021 công ty Prudential Việt Nam.
https://www.prudential.com.vn/export/sites/prudential-vn/vi/.thu-vien/pdf/ve-prudential/prudential-bao-c
ao-ket-qua-kinh-doanh-2021.pdf
[4] Prudential Việt Nam. (2021, May 12). Video Giới thiệu Prudential 22 năm [Video]. YouTube.
https://www.youtube.com/watch?v=XPEROdXaDhE
[5] M.-H. (2021, October 7). Nhu cầu mua bảo hiểm tăng cao trong bối cảnh đại dịch COVID-19. Tạp
Chí Thị Trường Tài Chính - Tiền Tệ. Retrieved July 19, 2022, from
https://thitruongtaichinhtiente.vn/nhu-cau-mua-bao-hiem-tang-cao-trong-boi-canh-dai-dich-covid-19-3
7355.html
[6] Prudential Vietnam. (n.d.-a). Chung tay hỗ trợ cùng vượt qua Covid-19 | Prudential Việt Nam.
Retrieved July 19, 2022, from
https://www.prudential.com.vn/vi/thong-tin-uu-dai-dich-vu-danh-cho-khach-hang/chung-tay-ho-tro-cun
g-vuot-qua-covid-19/
[7] Prudential Vietnam. (2022, March). Báo cáo tài chính riêng năm 2021 Công ty Prudential Việt
Nam.
https://www.prudential.com.vn/export/sites/prudential-vn/vi/.thu-vien/pdf/ve-prudential/bao-cao-tai-chin
h-rieng-nam-2021.pdf
[8] Quang Binh Newspaper. (2021, December 31). Prudential Việt Nam được vinh danh trong Top 10
doanh nghiệp bền vững. BaoQuangBinh. Retrieved July 19, 2022, from
https://baoquangbinh.vn/xa-hoi/202112/prudential-viet-nam-duoc-vinh-danh-trong-top-10-doanh-nghie
p-ben-vung-2196770/
[9] N.-L. (2014, January 6). Prudential: Ngôi vị số 1 đang bị thách thức? Cổng thông tin Tài chính,
Chứng khoán. Retrieved July 19, 2022, from
https://www.tinnhanhchungkhoan.vn/prudential-ngoi-vi-so-1-dang-bi-thach-thuc-post28134.html
[10] Prudential Vietnam. (n.d.-b). Sản phẩm bảo hiểm nhân thọ. Retrieved July 19, 2022, from
https://www.prudential.com.vn/vi/san-pham-bao-hiem-nhan-tho/
[11] VietinBank Insurance Corporation. (n.d.). Chương trình Bảo hiểm bệnh Sốt xuất huyết.
https://cssk.tca.com.vn/uploads/files/BHSXH.pdf
13
[12] Bảo hiểm sốt xuất huyết VBI bảo vệ cả gia đình bạn. (2021, April 24). Mua sắm đồ tốt.
https://muasamdotot.vn/sanpham/bao-hiem-sot-xuat-huyet-vbi-bao-ve-ca-gia-dinh-ban/
[13] G.-L. (2021, September 6). Điểm tựa tăng trưởng ngành bảo hiểm. Cổng thông tin Tài chính,
Chứng khoán.
https://www.tinnhanhchungkhoan.vn/diem-tua-tang-truong-nganh-bao-hiem-post278891.html
[14] Prudential cam kết hành động vì một cộng đồng người Việt khỏe mạnh và thịnh vượng |
Prudential Việt Nam. (2019, November 18). Prudential Vietnam. Retrieved July 19, 2022, from
https://www.prudential.com.vn/vi/thong-cao-bao-chi/prudential-cam-ket-hanh-dong-vi-mot-cong-dong-
nguoi-viet-khoe-manh-va-thinh-vuong/
[15] Prudential Vietnam. (n.d.-b). Nghề nghiệp ảnh hưởng đến hợp đồng bảo hiểm như thế nào? |
Prudential Việt Nam. Retrieved July 19, 2022, from
https://www.prudential.com.vn/vi/blog-nhip-song-khoe/nghe-nghiep-anh-huong-den-hop-dong-bao-hie
m-nhu-the-nao/
[16] Prudential Vietnam. (n.d.-d). Trí tuệ nhân tạo sẽ ảnh hưởng tới tương lai của ngành bảo hiểm
nhân thọ như thế nào? | Prudential Việt Nam. Retrieved July 19, 2022, from
https://www.prudential.com.vn/vi/blog-nhip-song-khoe/tri-tue-nhan-tao-se-anh-huong-toi-tuong-lai-cua-
nganh-bao-hiem-nhan-tho-nhu-the-nao/
[17] Prudential Vietnam. (n.d.-a). 5 yếu tố xã hội tác động đến sức khỏe mà ít ai biết | Prudential Việt
Nam. Retrieved July 19, 2022, from
https://www.prudential.com.vn/vi/blog-nhip-song-khoe/5-yeu-to-xa-hoi-tac-dong-den-suc-khoe-ma-it-ai
-biet/
[18] Prudential Vietnam. (n.d.-b). Hiểu rõ bảo hiểm nhân thọ là gì? Vì sao nên mua càng sớm càng
tốt? | Prudential Việt Nam. Retrieved July 19, 2022, from
https://www.prudential.com.vn/vi/blog-nhip-song-khoe/tong-quan-ve-bao-hiem-nhan-tho-danh-cho-ngu
oi-lan-dau-tham-gia/
[19] Prudential Vietnam. (n.d.-d). Miễn trừ trách nhiệm & Quyền sở hữu | Prudential Việt Nam.
Retrieved July 19, 2022, from
https://www.prudential.com.vn/vi/mien-tru-trach-nhiem-va-quyen-so-huu/
14
