Manulife Vietnam has increased its chartered capital by 38% to US$61.6bn, demonstrating the insurer’s commitment to the life insurance market of the fast-growing Southeast Asian economy.
The increase was made during the end of 2016’s second quarter and is the second time in eight months that the insurer has added to its chartered capital. Previously, an increase of US$7.9m was made in the fourth quarter of last year.
“This will help Manulife serve customers more effectively and allow the company to provide customers with more financial solutions,” said Paul Nguyen, Manulife Vietnam’s general manager.
The company will also diversify its distribution channels, as well as implement the latest technology in its operations, he added.
Manulife Vietnam is the first fully foreign-owned insurer in Vietnam and has been operating since 1999. It offers life, health, and education insurance, as well as investment and pension solutions. It has 49 offices with 500 employees, and plans to open 10 more offices this year.
On July 1, the Vietnamese government introduced a regulation that declares foreign insurers can reinsure only up to 90% of their total insurance liability. This move was made due to “certain issues with overseas reinsurance”, including the amount of foreign currency that local insurers cede to their partners abroad.
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