Sun Life Financial Inc. has announced that its subsidiary, Sun Life Vietnam, and the Tien Phong Commercial Bank (TPBank) have formed a 15-year bancassurance partnership in Vietnam.

The agreement combines TPBank’s distribution network with Sun Life Vietnam’s market-leading life insurance products, giving 2.5 million TPBank customers access to a comprehensive range of innovative insurance solutions.

The bancassurance partnership contributes to Sun Life Vietnam’s strategic priority to be a leader in Asia through distribution excellence in higher growth markets. Bancassurance is a promising, high-growth distribution channel for life insurance in Vietnam.

“We are very excited to partner with TPBank, a digital leader in Vietnam’s banking sector,” said Mr. 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.”

The 15-year bancassurance partnership affirms the long-term commitment of TPBank and Sun Life Vietnam to help clients achieve their financial goals with exceptional banking and insurance solutions.

Under the agreement, Sun Life will make an initial payment of approximately $100 million, which it intends to fund with internal resources. This initial payment will be amortized over 15 years. There will also be ongoing, variable payments, based on the success of the bancassurance partnership.

Sun Life Vietnam is a life insurance company with 100 per cent capital from Sun Life Financial. It currently has a nationwide network of 55 branches and customer care centers.

TPBank was founded on May 5, 2008. It inherits technological expertise and financial strength from its strategic shareholders, including the DOJI Gold & Gems Group, the FPT Group, the Vietnam National Reinsurance Corporation (Vinare), SBI Ven Holding Pte. Ltd (Singapore), the International Finance Corporation (IFC - under the World Bank Group), and PYN Elite Fund.