LienVietPostBank is mulling over an exclusive bancassurance deal after its 5-year agreement with Dai-ichi Life.
Pham Doan Son, vice president of LienVietPostBank said at its recent annual general meeting that the bank is in discussions with several insurance firms for a potential exclusive bancassurance agreement, as the 5-year contract with Dai-ichi Life will expire soon.
The bank is considering 15-20 years of an exclusive, long-term partnership with a suitable life insurer. The deal is likely to be completed by mid-June after numerous rounds of negotiations.
This new upfront fee from the bancassurance deal will have a significant impact on LienVietPostBank's business performance this year, Son remarked.
Pre-tax earnings for LienVietPostBank are realistically expected to rise by more than 30 per cent in 2022.
The prepayment fee that will be received from the exclusive insurance distribution deal is not included in the bank's current profit objectives, according to bank management.