Prudential, the London-based insurance giant, today said it is selling its Vietnamese consumer finance business, Prudential Vietnam Finance Company (PVFC), to Shinhan Card Co, in a deal valued at US$151m, while inking “a new long-term bancassurance partnership in Vietnam and Indonesia” with Shinhan’s parent, Korea’s Shinhan Financial Group.
The deal, which is subject to regulatory approvals and which was announced today out of Prudential’s Hong Kong offices, comes six months after the US-based insurance company with a similar name, Newark, New Jersey-based Prudential Financial, announced it had agreed a joint venture with an Indonesian consumer-focused business group CT Corp, to provide life insurance products to the Indonesian and wider Asian markets.
PVFC was launched in 2006 as the first foreign, non-bank financial institution licensed for consumer finance lending in Vietnam. Today it is the fourth largest consumer finance company by outstanding loan balance, Prudential said.
Prudential and Shinhan “will work closely to ensure a smooth transition of the business”, the company added, noting that PVFC would remain “committed to all of its customer obligations, and operations will continue as normal until the transaction has been completed”.
It said it also remained “fully committed to the Vietnamese market” through its life insurance business, Prudential Vietnam Assurance Private Limited, and asset management business, Eastspring Investments Fund Management Company (Vietnam).
According to Prudential Corporation Asia chief executive Nic Nicandrou, the sale of the PVFC business came because although a “high quality business”, it wasn’t “core to our strategy in Vietnam”.
“Vietnam remains an attractive and important market to Prudential, where we have high quality and fast-growing life insurance and asset management operations,” he added.
“As part of this transaction, we are further expanding our regional platform through the new long-term bancassurance partnership with Shinhan in both Vietnam and Indonesia, to continue serving the growing savings and protection needs of the Asian population.”