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Aviva acquires VietinBank shareholding in JV

Released at: 12:27, 22/04/2017

Aviva acquires VietinBank shareholding in JV

Photo: Aviva

Deal sees Aviva Vietnam pick up 50% shareholding of VietinBank in insurance joint venture, making it a wholly-owned Aviva subsidiary.

by Uy Vu

Aviva plc announced on April 21 it had acquired VietinBank’s entire 50 per cent holding in the VietinBank Aviva Life Insurance Limited (Aviva Vietnam) life insurance joint venture and had signed a new distribution agreement with VietinBank to sell life and health insurance products through the bank’s network of over 1,100 branches and transaction offices; the second-largest in Vietnam.

Aviva Vietnam is now a wholly-owned subsidiary of Aviva, with a key focus on growing the business across all key distribution channels. The move also simplifies Aviva’s operating structure in the region. The transaction is now subject to customary closing conditions, including regulatory approvals.

Aviva Vietnam was founded in 2011 and has since built a strong presence in the market, becoming a Top 10 life insurer by premium value. Vietnam is an attractive insurance market, with double digit life premium growth over the last three years and has one of the world’s lowest life insurance penetration levels, at less than 1 per cent of GDP (Source: Swiss Re, The Vietnamese Insurance Market, January 2017). The insurance sector is expected to benefit from the country’s projected GDP growth of more than 6 per cent annually over the next three years (Source: World Bank, Global Economic Prospects, January 2017).

“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 Mr. 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.”

Mr. Randy Lianggara, Regional CEO for China, Indonesia and Vietnam, said: “We are thankful to VietinBank for the excellent support they have offered us and the high-quality partnership we have built together. We will continue to meet the changing needs of Vietnamese people by introducing relevant products that are targeted to their unique life stages. We will also expand our distribution and digital capabilities and enhance the service quality we provide to our customers.”

About Aviva:

  • Aviva provides life insurance, general insurance, health insurance, and asset management to 33 million customers in 16 markets worldwide.
  • In the UK, we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia, and Canada. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 Index. 
  • Aviva’s asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over £340 billion ($435.7 billion) in assets. Total group assets under management at Aviva are £450 billion ($576.7 billion).
  • Aviva helps people save for the future and manage the risks of everyday life, paying out £34.4 billion ($44 billion) in benefits and claims in 2016.
  • By serving our customers well, we are building a business that is strong and sustainable, where our people are proud to work, and which makes a positive contribution to society.

About Aviva Asia

  • Aviva operates in seven markets in Asia: Singapore, China, Indonesia, Hong Kong, Vietnam, Taiwan and India.
  • Aviva is a top tier insurer in Singapore and one of the largest providers of employee benefits and healthcare insurance.
  • As at September 30, 2016, Aviva-COFCO ranked ninth among 27 foreign life insurers in China in terms of APE, operating in 13 provinces with over 80 branches.
  • In Indonesia, Astra Aviva Life is an equal joint venture between Aviva and Astra International, one of Indonesia’s largest diversified conglomerates, selling and distributing insurance products.
  • Aviva has had a presence in Hong Kong for more than 150 years.
  • In Vietnam, Aviva acquired the 50 per cent shareholding in VietinAviva from VietinBank in 2017, making it a wholly-owned subsidiary of Aviva.
  • Aviva operates First-Aviva in partnership with First Financial Holdings in Taiwan, with a broad distribution network of 188 branches around the country.
  • Aviva partners in India with the Dabur Group, one of India’s oldest and most respected business houses and one of the largest producers of traditional healthcare products, and has a distribution network of over 100 branches and 12,000+ financial planning advisors.
  • Following Aviva’s acquisition of Friends Life Group in April 2015, Friends Provident International is now part of the Aviva Group. Friends Provident International provides life assurance and investment products in Singapore, Hong Kong and the United Arab Emirates.

About VietinBank

  • VietinBank is a public company listed on the Ho Chi Minh Stock Exchange (HoSE) with the following major shareholder structure: Vietnamese Government 64.46 per cent and Bank of Tokyo-Mitsubishi UFJ (BTMU) 19.73 per cent.
  • VietinBank is one of the leading banks in Vietnam. In 2016, total assets continued to grow impressively, reaching VND948.7 trillion ($41.8 billion), an increase of 22 per cent compared with 2015. VietinBank has maintained its leading position in the local banking sector in terms of profitability, with pre-tax profit in 2016 reaching VND8.569 trillion ($378 million), an increase of 17 per cent compared with 2015. In 2016, VietinBank transformed its customer portfolio with strong development in retail banking, SMEs and FDI, and maintained its leading position in corporate banking.

          Outstanding awards and honors

  • According to Brand Finance, VietinBank’s brand value stands at $249 million, has a world ranking of 379th, and a brand rating of A+. For the fourth time, VietinBank was selected in the Brand Finance Banking 500 - the world’s most valuable banking brands.
  • According to Vietnam Report and Vietnamnet e-newspaper, VietinBank was ranked in the Top 20 out of the 500 largest companies in Vietnam (VNR500). At the same time, it appeared on the list of the Top 50 in growth in Vietnam from 2009 to 2014.
  • VietinBank was named in the Forbes Global 2,000 for the fourth consecutive year, ranking 1,902nd.

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