Dai-ichi Life Vietnam and LienVietPostBank signed a 15-year exclusive bancassurance partnership agreement Tuesday.
J.P. Morgan, a global leader in financial services, is the exclusive financial advisor for the Vietnamese lender in this deal.
Dai-ichi Life Vietnam, under Japan’s biggest life insurer Dai-ichi Life, became the exclusive provider of life insurance products to LienVietPostBank’s customers.
Since the beginning of the strategic cooperation between the two sides in November 2016, the two businesses have provided financial services to 180,000 customers and resolved indemnification for 1,320 customers.
Tran Dinh Quan, general director of Dai-ichi Life Vietnam, said he expected strong prospects from the insurance sector in Vietnam, as the total life insurance premium in the country is lower than 2% of the GDP and below the global average of 3.3%.
Baoviet Life, Manulife, Prudential, and Dai-ichi Life were the top life insurers in Vietnam in terms of insurance premiums in the first nine months of the year, according to the quarterly report of the Insurance Association of Vietnam (IAV). Dai-ichi Life was in the fourth position with VND15,694 billion ($631.8 million), or 12.35% of the total.
In January-September, the market recorded 2.39 million new insurance policies, down 5.2% year-on-year, with an insurance premium of VND37,677 billion ($1.52 billion), up 6.35%.
LienVietPostBank, listed on the Ho Chi Minh Stock Exchange as LPB, said its post-tax profit jumped 61.32% year-on-year to VND986.9 billion ($39.72 million) in the third quarter of this year. In the first nine months of this year, the bank earned a post-tax profit of VND3,842 billion ($154.6 million), up 72.4% year-on-year.