Sun Life Vietnam Insurance Company Ltd and Tien Phong Commercial Bank (TPBank) have entered a 15-year distribution partnership in the Vietnam market.

According to a statement by the two firms, the agreement combines TPBank’s distribution network with Sun Life Vietnam’s life insurance products, giving 2.5 million TPBank customers access to a wide range of insurance products.

As part of the agreement, Sun Life will make a payment of around C$100 million (US$75.3 million), which will be paid across the 15-year duration of the contract, the statement said. There will also be ongoing, variable payments, based on the success of the bancassurance partnership, the statement added.

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The deal is part of Sun Life’s thrust to strengthen its distribution capabilities in higher growth markets. Known as bancassurance, this is a promising, high-growth distribution channel for life insurance in Vietnam and other emerging Asian markets.

“We’re very excited to partner with TPBank, a digital leader in Vietnamese banking,” said Léo Grépin, president of Sun Life ASEAN. “This bancassurance partnership demonstrates our focus on expanding our distribution network with world-class partners that share our goal of constant innovation. We look forward to working with TPBank to secure a brighter future for their customers in Vietnam.”