Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and Manulife (Vietnam) have signed an agreement to establish an exclusive 16-year bancassurance partnership to better meet the growing financial and insurance needs of the Vietnamese people.
Manulife Vietnam will be the exclusive provider of bancassurance solutions to VietinBank customers in Vietnam soon after regulatory approval is obtained. This partnership will offer insurance, wealth and retirement solutions.
As part of the transaction, Manulife Financial Asia will acquire Aviva Vietnam. The acquisition of Aviva Vietnam will be subject to regulatory approvals. Manulife expects the partnership to be accretive to diluted core earnings per common share in 2022 and the impact on the LICAT (Life Insurance Capital Adequacy Test ratio is expected to be less than 1%.
Manulife Vietnam will work closely with VietinBank to design and offer a full suite of insurance, wealth and retirement products that serve the needs of all key customer groups in Vietnam. These products will be distributed through a professional and well-trained sales force supported by the latest digital tools and processes.
Manulife Vietnam is currently Vietnam’s number one life insurer by 2019 annual premium equivalent (APE) sales. It entered Vietnam in 1999 as the first foreign-owned insurer to be granted a licence. It now has around 1,000 permanent staff and over 50,000 contracted agents, serving more than 1m customers. This new partnership with VietinBank will significantly grow Manulife Vietnam’s distribution capabilities across the country and strengthen Manulife Vietnams’s market leading position in Vietnam.
VietinBank is one of Vietnam’s largest financial institutions, serving more than 14m customers through a network of over 150 branches and 1,000 transaction offices across 63 cities and provinces in the country. In the first half of 2020, VietinBank was ranked number one in terms of bancassurance sales among state-owned banks in Vietnam.
Mr Le Duc Tho, chairman of VietinBank said, “VietinBank and Manulife Vietnam have strengths and ambitions that complement each other – in particular, our strong shared focus on providing customer-centric financial products, services and solutions to Vietnamese individuals, families and businesses. The signing of the agreement is an important milestone that marks our cooperation with Manulife Vietnam.”
Mr Roy Gori, Manulife president and CEO, said, “We are extremely pleased to enter into partnership with VietinBank, Vietnam’s leading bank. We share an ambition to accelerate digital transformation to make lives better for millions of people across Vietnam. This partnership increases our market share leadership in Vietnam and capitalises on our strong position as one of the leading international life insurers in Asia, further progressing our growth trajectory in the region.”