Global insurer Prudential plc has announced it will sell 100% of its consumer finance business in Vietnam to Shinhan Card, a subsidiary of Korean firm Shinhan Financial Group. The deal is worth US$151 million and remains subject to regulatory approvals.
The unit, Prudential Vietnam Finance Company (PVFC), is currently the country’s fourth largest firm of its type by outstanding loan balance, according to the insurer. However, Prudential Asia CEO Nic Nicandrou outlined that the unit is not core to the insurer’s Vietnam strategy. Shinhan Card, meanwhile, is the largest credit card company in Korea. Its parent firm has had a presence in Vietnam since 1993, and is also one of the largest financial institutions by market capitalisation in South Korea.
PVFC was launched in 2006 as the first foreign, non-bank financial institution licensed for consumer finance lending in Vietnam. Despite the sale, Prudential said it still remains committed to the Vietnamese market through its life insurance business, Prudential Vietnam Assurance, and asset management business, Eastspring Investments.
“As part of this transaction, we are further expanding our regional platform through the new long-term bancassurance partnership with Shinhan in both Vietnam and Indonesia to continue serving the growing savings and protection needs of the Asian population,” said Nicandrou.
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