The lender will contribute VNĐ1.04 trillion, securing an 80 per cent stake and the position of controlling shareholder.
Customers at a Techcombank transaction office. — Photo courtesy of the bank
HÀ NỘI — Techcombank has officially collaborated with Vingroup to establish Techcombank Life (TCLife), a life insurance company with a charter capital of VNĐ1.3 trillion (US$50.7 million).
The lender will contribute VNĐ1.04 trillion, securing an 80 per cent stake and the position of controlling shareholder.
Vingroup, renowned for its extensive ecosystem encompassing real estate, retail, tourism, healthcare and education, joins as a major shareholder.
This partnership leverages Techcombank's financial expertise and Vingroup's diverse consumer base, positioning TCLife for robust market entry.
TCLife plans to offer seven life insurance products, including whole life, pure endowment, term life, mixed insurance, annuities, and investment-linked insurance.
It will also provide two health insurance products covering medical expenses and personal accident insurance.
The company's operations are projected to span 50 years following approval from the Ministry of Finance.
The Vietnamese life insurance market is experiencing rapid growth, yet its penetration remains low compared to regional counterparts, said Techcombank.
The bank identifies this as an opportunity to increase revenue through effective engagement with its existing customer base.
Techcombank anticipates that within five years, TCLife will achieve a net profit of approximately VNĐ1.195 trillion, reflecting a return on investment of 23.4 per cent.
This strategic move follows Techcombank's termination of its exclusive bancassurance partnership with Manulife, a decision that involved a compensation payment of VNĐ1.8 trillion.
CEO Jens Lottner emphasised that this step aligns with the bank's long-term strategy to deepen its involvement in the production and provision of insurance products, moving beyond the role of a mere distributor.
On the stock market, Techcombank closed Monday at VNĐ28,000 per share, up 2.4 per cent from the previous session, while shares of Vingroup hit the ceiling price at VNĐ56,700 per share. — BIZHUB.VN/VNS
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