Manulife to become VietinBank’s exclusive insurance partner with Aviva purchase
In this article (5)
Canadian insurer Manulife will acquire the Vietnamese business of British company Aviva and its 16-year bancassurance deal with VietinBank.
It will take over the exclusive partnership with VietinBank when the deal is completed, Manulife and the lender agreed on Monday.
The state-owned lender chose Manulife as its bancassurance partner because of its long-term commitment to Vietnam, deputy director of VietinBank, Nguyen Duc Thanh, said at the agreement-signing ceremony.
He said his bank’s board expects the bancassurance business to grow by 30 percent annually and contribute 6-8 percent of the income from services.
Manulife expects the partnership to increase its market share in the country from 20 percent to 30 percent in the coming years. It is currently the exclusive insurance partner of the country’s largest private lender, Techcombank.
Aviva did not reveal the value of the sale but said in a statement that it expects the transaction to increase its net asset value and solvency surplus by around GBP100 million ($133.67 million).
The company is looking to sell its operations in continental Europe and Asia to focus on Britain, Ireland and Canada.
Vietnam had 18 life insurance companies with combined premium revenues of VND106.6 trillion ($4.6 billion) last year, up 24 percent year-on-year. In terms of new contracts, Manulife led the market for the first time last year with 17.7 percent followed by Bao Viet Holdings with 16.49 percent and Prudential Vietnam with 15.78 percent, according to the Ministry of Finance.
Questions & Answers
Q.Why is Aviva selling its Vietnamese business?
Why is Aviva selling its Vietnamese business?
Aviva is selling its Vietnamese operations as part of a strategy to focus on its core markets. The company plans to concentrate on Britain, Ireland, and Canada, divesting from continental Europe and Asia.
Q.What financial benefit does Aviva expect from this sale?
What financial benefit does Aviva expect from this sale?
Aviva expects this transaction to enhance its net asset value and solvency surplus. The company anticipates an increase of approximately GBP100 million from the sale.
Q.How much income does VietinBank expect from its bancassurance business?
How much income does VietinBank expect from its bancassurance business?
VietinBank's board anticipates its bancassurance business will contribute substantially to its income. They expect it to generate 6-8 percent of income from services, with 30 percent annual growth.
Reader pulse
Is Aviva's Vietnam exit a good strategic move?
18,031 votes so far