Canada’s leading insurer Manulife and local lender VietinBank will sign an exclusive bancassurance agreement in Hanoi this week.
Manulife is rumoured to be taking over the exclusive bankassurance deal with VietinBank from Aviva
A close source familiar with the matter said that the exclusive bancassurance deal to sell insurance at VietinBank will be transferred from Aviva to Manulife.
Last year, Bloomberg reported that Japan’s MS&AD Insurance Group Holdings and Manulife were mulling over acquiring Aviva assets in Singapore and Vietnam. The bancassurance deal was roughly calculated to be worth several hundred million US dollars.
Aviva had originally entered Vietnam in 2011 by establishing a 50:50 joint venture with Vietinbank, called Vietinbank Aviva Insurance.
In April 2017, Aviva acquired VietinBank’s 50 per cent stake, renamed it Aviva Vietnam Life Insurance Co., Ltd., and signed an exclusive 18-year deal to distribute its life insurance products through VietinBank's network, VnExpress reported.
This industry insider also revealed that the value of the exclusive agreement will "increase significantly" compared to the previous agreement with Aviva.
The Canadian firm seems to be very upbeat about the domestic insurance market.
Currently, Manulife is also an exclusive distributor of life insurance at Techcombank – one of the leading banks in cross-selling insurance.
In 2019, Rong Viet Securities noted that VietinBank earned more than VND1.2 trillion ($52.17 million) from bancassurance, placing in the top five lenders with the largest life insurance premium in Vietnam.