Bloomberg: Manulife wants to sell insurance through VietinBank, the deal value could reach several hundred million USD
According to Bloomberg, Manulife is considering an insurance distribution agreement through VietinBank’s trading network. This contract can be valued up to several hundred million USD.
Illustration. (Source: Manulife)
Bloomberg cited an internal source as saying that Manulife Financial Corp is emerging as a leading candidate in the insurance distribution agreement via VietinBank.
“Manulife is considering a deal with Aviva Vietnam, which includes a bancassurance agreement with Aviva’s Vietnamese partner, VietinBank, to distribute its insurance products through its branches. . “
“This contract could be valued at up to several hundred million dollars,” an unnamed source told Bloomberg.
“Negotiations are ongoing and still likely to fail. Other contractors may also appear. Representatives from Aviva, Manulife and Vietinbank all declined to comment on this information,” Bloomberg added.
Manulife is an insurance group from Canada and currently operates in 11 markets in Asia including Vietnam, Japan and Hong Kong.
In 2019, one third of Manulife’s core income comes from the Asian market. 2019 is also the year to see the number of Manulife agents in the region increase 20% to more than 95,000, according to the insurance company’s latest annual report.
Selling products through bancassurance has become a popular way for insurance companies to expand their operations in Southeast Asia. Last year, FWD Group Ltd., an insurance company owned by Hong Kong billionaire Richard Li, signed an insurance distribution cooperation agreement with Vietcombank, one of the largest banks in Vietnam.
Meanwhile, Aviva is restructuring its business operations in Asia including Vietnam, Hong Kong and Indonesia. In March, Aviva agreed to leave Indonesia by selling a stake in the joint venture to PT Astra International Tbk. However, the value of the deal was not disclosed.
Earlier, in September 2019, Reuters also quoted a source familiar with the matter as saying that several major insurance groups including Canadian insurance companies, Sun Life Financial and Manulife Financial, were negotiating to acquire. Aviva’s insurance segment in Singapore and Vietnam. The total value of the agreement is estimated to be between 2 and 2.5 billion USD.