Aviva acquires entire shareholding in Vietnam JV
Aviva acquires entire shareholding in Vietnam JV
The multinational insurance company Aviva Plc has announced the acquisition of VietinBank’s entire 50 per cent shareholding in its life insurance joint venture VietinBank Aviva Life Insurance Limited (Aviva Vietnam) and signing of a new distribution agreement with VietinBank to sell life and health insurance products through the bank’s network of over 1,100 branches and transaction offices, the second-largest in the market.
As a result of the transaction, Aviva Vietnam is now a wholly owned subsidiary of Aviva with a key focus on growing the business across all key distribution channels. This move also simplifies Aviva’s operating structure in the region. The transaction is subject to customary closing conditions including regulatory approvals.
Chris Wei, Chairman Aviva Asia and global chairman of Aviva Digital said that “With Aviva’s insurance and digital expertise and a strong partnership with a leading bank, we are optimistic about our growth prospects in Vietnam. We have developed a deep and successful relationship with VietinBank and will continue to build on our strong foundations.”
While on the announcement, Randy Lianggara, regional CEO for China, Indonesia and Vietnam said: “We are thankful to VietinBank for the excellent support it has offered us, and the high-quality partnership we have built together.”
He added: “We will continue to meet the changing needs of the Vietnamese people by introducing relevant products that are targeted to their unique life stages. We will also expand our distribution and digital capabilities and enhance the service quality we provide to our customers.”
Aviva Vietnam was founded in 2011 and has since built a strong presence in the market, becoming a Top-ten life insurer by premium. Vietnam is an attractive insurance market with double digit life premium growth in the past three years and one of the world’s lowest life insurance penetration levels, at less than 1 per cent of GDP. The insurance industry is expected to benefit from the country’s projected GDP growth of more than 6 per cent annually over the next three years.
