Published 25 April 2017
Aviva has acquired its partner’s entire stake in its Vietnam joint venture, making the company a wholly owned subsidiary.
Aviva bought VietinBank’s 50% stake in VietinBank Aviva Life Insurance, renaming it Aviva Vietnam.
The transaction, which is still subject to regulatory approvals and other customary closing conditions, will simplify Aviva’s operating structure in the market.
Aviva and VietinBank have also entered into a new distribution agreement wherein the insurance giant will offer life and health insurance products through the Vietnamese bank’s network comprising over 1,100 branches.
Founded in 2011, the life insurance joint venture between Aviva and VietinBank is claimed to have created a strong footprint in the Vietnamese market. According to Aviva, the joint venture has grown to become one of the top ten life insurers in terms of premium.
Aviva Asia executive chairman and Aviva Digital global chairman Chris Wei said: “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.”
Citing a report from the January-published “Swiss Re, The Vietnamese insurance market”, Aviva stated that Vietnam is an attractive market for insurance which has seen double digit life premium growth in the last three years. Apart from that, with a GDP of less than 1%, the country has one of the lowest life insurance penetration levels in the world.
Last month, Aviva reported a surge of 12% in its operating profit which moved up to £3.01bn for the full year of 2016 in comparison to the 2015 operating profit of £2.68bn.
Image: Head office of Aviva in St Helen’s, London. Photo: courtesy of Aviva plc.