UK-based multinational insurance group Aviva has acquired its partner’s entire stake in its Vietnam joint venture, making the firm a wholly owned subsidiary.
Aviva bought VietinBank’s 50% stake in VietinBank Aviva Life Insurance, renaming it Aviva Vietnam, as part of its thrust to grow the business in all distribution channels, according to the company’s press release.
The transaction, which is still subject to regulatory approvals and other customary closing conditions, will also simplify Aviva’s operating structure in the market.
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Aviva and VietinBank have not fully terminated their relationship, as Aviva Vietnam entered a distribution agreement with the bank to sell its products across the country’s second-largest branch network, with over 1,100 branches and offices.
“With Aviva’s insurance and digital expertise and a strong partnership with a leading bank, we are optimistic about our growth prospects in Vietnam,” said Chris Wei, executive chairman of Aviva Asia and global chairman of Aviva Digital. “We have developed a deep and successful relationship with VietinBank and will continue to build on our strong foundations.”
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