Aviva also has signed a new distribution agreement with VietinBank to sell life and health insurance products through VietinBank’s network of over 1,100 branches, 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.
Aviva Vietnam was founded in 2011 and has since built a strong presence in the market, becoming a top 10 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 percent of GDP, said Aviva, quoting January 2017 statistics from Swiss Re.
The country is projected to obtain GDP growth of more than 6 percent annually over the next three years, which will benefit the insurance industry, Aviva continued. (These statistics come from the World Bank’s “Global Economic Prospects,” published in January).
Chris Wei, executive chairman of Aviva Asia and global chairman of Aviva Digital, 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.”