Private lender Techcombank enters non-life insurance business

Vietnam's major private creditor Techcombank has joined the non-life insurance market with the establishment of Techcom Non-Life Insurance JSC (TCGIns).

TCGIns is expected to start operation early next month, becoming the 32nd non-life insurer in the country.

Headquartered in Hanoi, TCGIns has a charter capital of VND500 billion ($20 million), with 11% owned by Techcombank, the maximum ownership ratio set in the revised Law on Credit Institutions 2024.

It will provide insurance products related to property, cargo transport, aviation, motor vehicle, fire and explosion, and health.

The legal representative and chairman of TCGIns is Chung Ba Phuong, who was previously director of Techcombank’s insurance business. He also worked for major insurance groups such as Generali, Manulife, and American International Group. Phuong used to be CEO of Manulife Vietnam and Generali Vietnam.

Notably, Phuong is also chairman of TC Advisors JSC, a supplier of consulting and financial management services for insurance companies in Vietnam. As of November 2016, major shareholders of this company were Do Tu Anh (5%) and Nguyen Huong Lien (67.5%) – the individuals with close ties with Techcombank.

The establishment of TCGIns comes after Techcombank and Manulife on October 14 ended their exclusive life insurance distribution agreement after 11 years.

Techcombank, listed on the Ho Chi Minh Stock Exchange (HoSE) as TCB, is one of the largest joint stock banks in Vietnam.

It is rated AA- by FiinRatings, Ba3 by Moody’s and BB- by S&P, which are the highest among joint stock commercial banks in Vietnam.

TCB shares closed at VND17,450 ($0.7) each on Tuesday.