Aviva’s life insurance joint venture in Vietnam is set to become a 100% owned subsidiary of the company after it announced the acquisition of VietinBank’s entire 50% shareholding.
In a deal, that was announced via a statement from the company earlier today, VietinBank Aviva Life Insurance Limited (Aviva Vietnam) also added that it has signed a new distribution agreement with VietinBank to sell life and health insurance products through VietinBank’s network of over 1,100 branches and transaction offices, as part of the transaction.
The transaction, subject to customary closing conditions including regulatory approvals, also simplifies Aviva’s operating structure in the region, the statement said. Financial details of the transaction were not disclosed.
The purchase follows recent news, as reported, that Aviva is looking to sell its stake in Isle of Man-headquartered Friends Provident International, in a shake-up of its international business.
This follows a deal, as reported, in January where Aviva, together with Chinese private equity firm Hillhouse Capital and technology company Tencent Holdings, agreed to develop a Hong Kong-based digital insurance company together.
Chris Wei, pictured left, executive chairman Aviva Asia and global chairman of Aviva Digital, said that the company was “optimistic” about its growth in Vietnam, which is said to be the second largest insurance market in Asia.
“We have developed a deep and successful relationship with VietinBank and will continue to build on our strong foundations,” he said,.
On the announcement, Randy Lianggara, Aviva’s regional CEO for China, Indonesia and Vietnam, said: “We are thankful to VietinBank for the excellent support they have offered us, and the high-quality partnership we have built together. We will continue to meet the changing needs of the Vietnamese people by introducing relevant products that are targeted to their unique life stages.
“We will also expand our distribution and digital capabilities and enhance the service quality we provide to our customers.”
Aviva Asia operates in seven markets in Asia (Singapore, China, Indonesia, Hong Kong, Vietnam, Taiwan and India).
Following Aviva’s acquisition of Friends Life Group in April 2015, Friends Provident International is now part of the Aviva Group. Friends Provident International (FPI) provides life assurance and investment products in Singapore, Hong Kong and the United Arab Emirates. As reported, FPI is under review by Aviva and, if sold, as expected, could bring in an estimated US$750m to the company.