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.
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.”