FWD Vietnam Life Insurance has received the approval of the Ministry of Finance to increase its charter capital to VND13,937bn ($593m) from VND3,675bn. This increase makes the life insurer the largest in Vietnam by charter capital.
Mr Huynh Huu Khang, CEO of FWD Vietnam, said in a statement, “Vietnam is one of the fastest growing insurance markets in Asia, and FWD is delighted to affirm our strong investment by increasing charter capital. This also demonstrates a commitment of responsibility to customers and partners, which in turn enhances the company’s expansion and accessibility nationwide.”
Meanwhile, FWD Vietnam completed its acquisition of Vietcombank Cardif Life Insurance Joint Venture (VCLI) earlier this month, on receiving official approval for the deal.
At the end of 2019, FWD Vietnam signed a 15-year exclusive insurance distribution cooperation agreement with the Joint Stock Commercial Bank for Foreign Trade of Vietnam. Under this agreement, the bank would distribute FWD’s life insurance products.
As part of the transaction, FWD also agreed to acquire VCLI, which was a life insurance joint venture company between the bank and BNP Paribas Cardif.
The move strengthens FWD’s presence and market share in the Vietnamese insurance market and underlines the company’s continued confidence in the long-term growth potential of Vietnam, the company said.
FWD plans to integrate VCLI into its existing business operations in Vietnam.
FWD Vietnam was established in 2016 and is a member of FWD Group which has aims of becoming a leading pan-Asian insurer. The group has a presence in Hong Kong & Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam, Japan and Malaysia. Established in Asia in 2013, FWD is the insurance business of investment group, Pacific Century Group.