Japanese insurer to acquire MVI Life from Manulife

Japanese insurer to acquire MVI Life from Manulife

This deal is notable as it represents Asahi Life's first foreign merger and acquisition (M&A) venture.

Manulife's transaction office in HCM City. — Photo courtesy of the company

Manulife's transaction office in HCM City. — Photo courtesy of the company

The Vietnamese insurance market is poised for a significant transformation as Manulife prepares to sell its stake in MVI Life Insurance to Japan's Asahi Life Insurance. 

This transaction, expected to be finalised in 2026, marks a crucial development in the country's burgeoning insurance industry.

Asahi Life is the second oldest life insurance provider in Japan with over 137 years of experience and managing assets worth approximately US$35.6 billion. The firm is expected to invest around 30 billion yen, equivalent to about US$192 million, in this acquisition. 

This deal is notable as it represents Asahi Life's inaugural foreign merger and acquisition (M&A) venture.

MVI Life, which was formerly known as Aviva Vietnam before being acquired by Manulife in 2021, has operated as an independent life insurance company since then. 

The transfer comes as Asahi Life aims to expand its operations in Việt Nam after eight years of co-consultancy under Asahi Life Vietnam LLC. The company's strategy involves leveraging its extensive experience in life and health insurance to establish itself in the Vietnamese market.

MVI Life has undergone three ownership changes since 2017. In that year, Aviva acquired 50 per cent of the shares of the Aviva - VietinBank joint venture from VietinBank, which was established in 2011. 

By 2022, Manulife purchased Aviva Vietnam and renamed it MVI Life. Since then, MVI Life has operated as an independent entity, separate from Manulife Vietnam, and is now preparing for new ownership.

The ongoing wave of M&A often brings hopes of a fresh beginning with each ownership change. 

While changes in non-life insurance companies typically attract less attention since their products are sold annually, the long-term nature of life insurance products, often spanning 10 to 20 years or more, draws significant interest from investors and customers alike.

According to announcements from Manulife and Asahi Life Vietnam, both companies are committed to ensuring a seamless transition for customers, partners and employees throughout this process. All contractual benefits of MVI Life will be preserved and guaranteed. 

Additionally, MVI Life is dedicated to maintaining the highest quality of service for its clients.

Upon successful completion of this transfer, the number of Japanese life insurance firms in Việt Nam will rise to two, alongside Dai-ichi Life Vietnam, which has been operational since 2007 and serves approximately 2.5 million customers.

There will also be a total of five companies with Japanese investments across both life and non-life insurance sectors. In addition to the two life insurance companies mentioned, the non-life insurance sector includes Tokio Marine Vietnam Insurance Co., the Union Insurance Company (UIC, which has investment from Japan's Sompo Insurance) and MSIG Vietnam Non-Life Insurance Co.

The latest M&A activity in the insurance market shows that the Vietnamese insurance sector remains appealing to foreign investors. However, despite its potential, success is not easily achieved, as evidenced by the quick turnover of foreign insurance groups in the market. 

Bizhub