Aviva gains full control of Vietnam life venture
UK insurer Aviva has acquired the entire shareholding of its life insurance joint venture VietinBank Aviva Life Insurance (Aviva Vietnam) in a move that it said simplifies the group's operating structure in the region.
The company has taken control of the remaining 50 percent shareholding and signed a new distribution agreement with VietinBank to sell life and health insurance products through VietinBank’s network of over 1,100 branches.
Following the transaction, Aviva Vietnam has become a wholly owned subsidiary of Aviva with a key focus on growing the business across all key distribution channels. Aviva Vietnam was founded in 2011.
"With Aviva’s insurance and digital expertise and a strong partnership with a leading bank, we are optimistic about our growth prospects in Vietnam," said Chris Wei, executive chairman Aviva Asia and global chairman of Aviva Digital.
"We have developed a deep and successful relationship with VietinBank and will continue to build on our strong foundations."
The company said that 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. And, the insurance industry is expected to benefit from the country’s projected GDP growth of more than 6 percent annually over the next three years.
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