Aviva Vietnam has also signed a new distribution agreement with VietinBank to sell its life and health insurance products through the bank’s network of over 1,100 branches, the second-largest in the market.
The move simplifies Aviva’s operating structure in the region and forms part of the firm’s strategy to focus on growing the business across key distribution channels in Vietnam.
Aviva Vietnam was founded in 2011 and has built a strong presence in the market, becoming a top 10 life insurer by premium, the firm said.
The market has experienced double digit life premium growth in the past three years and has one of the world’s lowest life insurance penetration levels, at less than 1% of GDP, the firm said.
The insurance industry is also expected to benefit from the country’s projected GDP growth of more than 6% annually over the next three years.
The transaction is subject to customary closing conditions, including regulatory approvals. Financial details of the deal were not disclosed.
Chris Wei, executive chairman Aviva Asia and global chairman of Aviva Digital, said: “With Aviva’s insurance and digital expertise and a strong partnership with a leading bank, we are optimistic about our growth prospects in Vietnam.
“We have developed a deep and successful relationship with VietinBank and will continue to build on our strong foundations.”