Aviva plc ("Aviva") announces the acquisition of VietinBank's entire 50% shareholding in its life insurance joint venture VietinBank Aviva Life Insurance Limited ("Aviva Vietnam") and signing of 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, the second-largest in the market.
As a result of the transaction, Aviva Vietnam is now a wholly owned subsidiary of Aviva with a key focus on growing the business across all key distribution channels. This move also simplifies Aviva's operating structure in the region. The transaction is subject to customary closing conditions including regulatory approvals.
Mr. Kenneth Rappold - Regional CFO of Aviva plc & Mr Nguyen Dinh Vinh - Deputy General Director of VietinBank signed the capital transfer contract.
Mr. Randy Lianggara - Aviva Regional CEO for China, Indonesia and Vietnam & Mr. Phung Duy Khuong - Director of Retail Banking at Vietinbank signed the distribution agreement.
Aviva Vietnam was founded in 2011 and has since built a strong presence in the market, becoming a top ten life insurer by premium. Vietnam is an attractive insurance market with double digit life premium growth in the past three years and one of the world's lowest life insurance penetration levels, at less than 1% of GDP. The insurance industry is expected to benefit from the country's projected GDP growth of more than 6% annually over the next three years.
Chris Wei, Executive Chairman Aviva Asia and Global Chairman of Aviva Digital, said:
"With Aviva's insurance and digital expertise and a strong partnership with a leading bank, we are optimistic about our growth prospects in Vietnam. We have developed a deep and successful relationship with VietinBank and will continue to build on our strong foundations."
On the announcement, Randy Lianggara, Aviva 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."
High representatives for Aviva and VietinBank at the signing ceremony.
About Aviva Group:
- Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers, across 16 markets worldwide
- In the UK we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia and Canada. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index.
- Aviva's asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over £340 billion in assets. Total group assets under management at Aviva group are £450 billion.
- Aviva helps people save for the future and manage the risks of everyday life; we paid out £34.4 billion in benefits and claims in 2016.
- By serving our customers well, we are building a business which is strong and sustainable, which our people are proud to work for, and which makes a positive contribution to society.
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About Aviva Asia
- Aviva operates in seven markets in Asia (Singapore, China, Indonesia, Hong Kong, Vietnam, Taiwan and India).
- Aviva is a top tier insurer in Singapore and one of the biggest providers of employee benefits and healthcare insurance.
- As at 30 September 2016, Aviva-COFCO ranked number 9 among 27 foreign life insurers in China in terms of APE, operating in thirteen provinces with over 80 branches.
- In Indonesia, Astra Aviva Life is an equal joint venture between Aviva and Astra International, one of Indonesia's largest diversified conglomerates, to sell and distribute insurance products.
- Aviva has had a presence in Hong Kong for more than 150 years.
- In Vietnam, Aviva acquired the 50% shareholding of VietinAviva from VietinBank to make it a wholly own subsidiary of Aviva in 2017.
- Aviva operates First-Aviva in partnership with First Financial Holdings in Taiwan, with a wide distribution network of 188 branches across the country.
- Aviva partners in India with the Dabur Group, one of India's oldest and most respected business houses and one of the largest producers of traditional healthcare products, and has a distribution network of over 100 branches and 12,000+ financial planning advisors.
- Following Aviva's acquisition of Friends Life Group in April 2015, Friends Provident International is now part of the Aviva Group. Friends Provident International provides life assurance and investment products in Singapore, Hong Kong and the United Arab Emirates.
 Source: Swiss Re, The Vietnamese insurance market, Jan 2017
 Source: World Bank, Global Economic Prospects, Jan 2017