Under the deal, Vietcombank will sell FWD’s life insurance products in Vietnam
Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and FWD Group have entered into an exclusive 15-year bancassurance partnership under which Vietcombank will distribute FWD’s life insurance products in Vietnam.
As part of the agreement, Vietcombank also agreed to sell its joint venture insurance company Vietcombank-Cardif Life Insurance (VCLI) for an undisclosed amount.
FWD will integrate VCLI business into its existing business in the country
Upon closing of the VCLI’s acquisition, FWD plans to integrate the joint venture into its existing business in Vietnam. VCLI will continue to operate via its existing channels until the transaction is completed.
FWD stated that the customers of VCLI will not be affected by the deal and all the existing policies will continue to be honoured by the insurance company after the deal is closed.
Vietcombank chairman Nghiem Xuan Thanh said: “After working carefully with highly reputable international financial and legal advisors to consider the strengths and qualities of various potential partners, we are happy to announce that we have selected FWD as the most qualified insurer to roll out the exclusive 15-year bancassurance partnership through Vietcombank’s network.
“FWD Vietnam – the unit assigned by FWD Group to directly implement the partnership – has a prominent advantage in digitalizing all business processes, with a solid strategy of developing diversified, simple and suitable products for each customer segment that aligns with the Digital Banking Transformation and Retail Banking Operation Development Strategy of Vietcombank.”
FWD Group CEO Huynh Thanh Phong said: “We’re absolutely thrilled to secure this partnership with Vietcombank, the best bank in Vietnam. We’re very proud to have established ourselves as a fresh and dynamic insurance challenger in just three years since entering Vietnam.
“This transaction and partnership with Vietcombank will take our Vietnam business to the next level and boost our ambitions to build a leading bancassurance franchise across the region as we continue to change the way people feel about insurance.”
In September this year, FWD Group completed the acquisition of SCB Life Assurance Public Company from Siam Commercial Bank (SCB) in Thailand and will also begin a 15-year bancassurance partnership in the country. The deal is subject to regulatory approval
SCB received a total consideration of THB92.7bn ($3bn) and will receive payments common in bancassurance transactions throughout the bancassurance partnership.