Joint Stock Commercial Bank for Foreign Trade of Vietnam and FWD Group have signed an exclusive 15-year bancassurance partnership, subject to regulatory approval.
As part of the deal, Vietcombank, Vietnam’s largest listed lender, will distribute FWD’s life insurance products, Reuters reported. The parties did not disclose the financial specifics of the deal.
FWD has also agreed to acquire Vietcombank-Cardif Life Insurance, a joint venture between the bank and BNP Paribas Cardif, the companies said in a statement.
In recent years, there have been several multi-million dollar bancassurance deals in the region, which leverage bank’s existing branch networks to distribute life insurance products to their clients.
Vietnam is one of the fastest growing insurance markets in Southeast Asia, and has gained interest from many international insurance investors. Its rapidly developing economy, growing middle class, and young population have made it attractive to companies such as Hong Kong-based FWD, which is owned by Pacific Century Group, founded by tycoon Richard Li. FWD entered the Vietnamese market in 2016, after acquiring Great Eastern’s operations in the country.