Hanwha Life Vietnam and Shinhan Bank Vietnam sign bancassurance deal

Under the deal, Shinhan Bank will become a business partner of Hanwha Life Vietnam to provide the latest insurance products to clients through Shinhan Bank’s distribution networks in Vietnam.

This cooperation is expected to create a comprehensive financial services that brings more values to both parties' customers by leveraging and promoting the advantage of the two leading Korean companies.

As an affiliate of Hanwha Group, one of Korea’s largest business groups, Hanwha Life Vietnam enjoys the advantage of impressive financial strength with nearly $103 million of charter capital, management experiences and premium quality products and services.

Meanwhile, Shinhan Bank - Shinhan Financial Group, a leading bank in Korea and has been entered Vietnam since 1993. After nearly 25 years of establishment and development, Shinhan Bank has expanded its network throughout the north and the south with 18 branches and transaction offices.

In April 2017, Shinhan Bank announced the agreement to buy ANZ Vietnam’s retail banking. The merger is considered as a big stride for Shinhan Bank in Vietnam as well as a strong impact on the growth of Vietnam's retail banking sector in the future.

Back Jong Kook, chairman of the board of directors cum general director of Hanwha Life Vietnam, said: “I believe that the cooperation between Hanwha Life Vietnam and Shinhan Bank Vietnam will help effectively exploit the great potentials and strengths of both parties, thereby creating a competitive advantage in the market. This cooperation will bring advanced insurance products to customers in a more comfortable and professional manner.

Currently, the cooperation with banks, including Shinhan Bank, is a part of Hanwha Life Vietnam’s diversified strategy of distribution channels, make its services more customer-friendly, and spur bancassurance business. Bancassurance is quite new in Vietnam and the potentials are enormous. This promises an important and fast growing sales channel in the future.

Previously, Hanwha Life Vietnam signed a strategic partnership deal with Woori Bank in February this year to push its insurance offerings through this counterparty.

“Shinhan’s goal is to provide the broadest portfolios and financial solutions for our clients. A part from existing products and services, including credit, cards, and e-banking and others, we now enter into this partnership with Hanwha Life to introduce insurance products as a perfect extension to our financial services, and also to offer customers a viable option that can protect themselves and their families,” said Shin Dong Min, CEO of Shinhan Bank Vietnam.

In the first quarter of this year, Hanwha Life Vietnam finished obtained the momentum for high growth in terms of both sales and business expansion. As a result, Hanwha Life Vietnam achieved VND137 billion (almost $6 million) annual first year premium (AFYP), up 75 per cent over the same period last year.

Also, in the first quarter of the year, Hanwha Life recorded a renew premium revenue of VND172.5 billion ($7.5 million), increase of 61 per cent in compared with the first quarter of last year.

According to the 2016 financial report, Hanwha Life Vietnam wrapped up 2016 with very positive business outcomes. Total premium revenue gained 48 per cent, of which a 41 per cent increase of new policy revenue compared to 2015.

It is also remarkable that 2016 was the first year the insurer made profit after eight years doing business in Vietnam, reporting profit before tax of VND12 billion ($522,000). Hanwha Life’s total assets as end of December 31, 2016 was VND2.997 trillion ($130.3 million), a 32 per cent surplus compared to 2015.