The 15-year agreement announced today (27 Nov) with Tien Phong Commercial Bank (TPBank) strengthens and diversifies Sun Life Vietnam's distribution in the country by extending its reach to 2.5 million TPBank customers.
Under the agreement, Sun Life will make an initial payment of approximately US$100 million, which the company intends to fund with internal resources. This initial payment will be amortised over 15 years. There will also be ongoing, variable payments, based on the success of the bancassurance partnership.
The agreement combines TPBank’s distribution network with Sun Life Vietnam’s life insurance products, giving TPBank customers access to a comprehensive range of insurance solutions to complement existing banking offers in one place.
Mr. Nguyen Hung, the CEO of TPBank said: “This partnership will bring more sustainable value to our customers and communities, bringing our customers more insurance solutions and helping them achieve lifetime financial security and live healthier lives. In particular, with our focus on technology development, the partnership is expected to leverage TPBank’s digital platform to make insurance transactions easier and deliver improved customer experience.”
Mr. Leo Grepin, the President of Sun Life ASEAN said: “This partnership demonstrates our focus on expanding our distribution network with world-class partners that share our goal of constant innovation.”
Mr. Larry Madge, the CEO of Sun Life Vietnam added: “Sun Life’s global Client for Life strategy puts the needs of our Clients at the center of everything we do. We are confident TPBank shares our relentless focus on delivering the best solutions and Client experiences and together we can help even more people in Vietnam achieve financial wellbeing.”
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Bancassurance is a promising, high-growth distribution channel for life insurance in Vietnam. This 15-year partnership affirms the long-term commitment of TPBank and Sun Life Vietnam to help Clients achieve their financial goals with the best banking and insurance solutions, said the company statement.
Tien Phong Commercial Joint Stock Bank (TPBank) was founded on May 5th 2008. Its shareholders include DOJI Gold & Gems Group, FPT Group, Vietnam National Reinsurance Corporation (Vinare), SBI Ven Holding Pte. Ltd (Singapore), IFC International Finance Company (under World Bank) and PYN Elite Fund.
Sun Life Vietnam (Sun Life) is a life insurance company with 100% capital from Sun Life Financial. Currently Sun Life has a nationwide network of 55 branches and customer care centers.
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