International insurer Ageas and Muang Thai Life Assurance have reached an agreement with Military Commercial Joint Stock Bank ("Military Bank") to set up a Vietnam joint venture to be named MB Ageas Life.
The deal is subject to regulatory approval and customary closing conditions. It is expected to be completed by the end of 2016, and MB Ageas Life is expected to commence operations subsequently.
In the new entity, Ageas will hold 29% of shares, Muang Thai will have 10%, while Military Bank will own the remaining 61%. MB Ageas Life will also have a 15-year bancassurance deal and sell its products at Military Bank’s 217 branches all across Vietnam, reaching over two million customers.
Luu Trung Thai, Vice Chairman of Military Bank said: "As a top 3 private sector bank by assets in Vietnam and one of the most effective banks in the country, Military Bank has become a trusted partner of major financial institutions worldwide. According to our business strategy, we are committed to developing life insurance services as part of our comprehensive financial services products to our clients. We are pleased to select Ageas and Muang Thai Life as our strategic partners who have demonstrated track record in bancassurance. Given our established and stable customer network nationwide and our partners' extensive expertise in life insurance, we do look forward to the sustainable success of this joint venture in Vietnam."
Related stories:
Top ten Vietnamese-owned banks and insurance firms revealed
Generali Vietnam and Eximbank sign bancassurance partnership
Vietnam insurance income on six-year high
