13:00 | 18/11/2020 Companies
On November 18th, Asia Commercial Joint Stock Bank (ACB) and Sun Life Vietnam Insurance Company Limited (Sun Life Vietnam), a subsidiary of Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) announced that they have formed a 15-year exclusive bancassurance partnership in Vietnam.
Launching January 1, 2021, the partnership combines ACB’s extensive distribution network of 371 branches in 48 provinces with Sun Life Vietnam’s competitive and comprehensive life insurance solutions and Client care. It will give ACB’s fast-growing base of 3.6 million Clients access to a comprehensive range of innovative insurance solutions for Clients at different life stages.
“We’re thrilled to announce this partnership to help millions more Clients in Vietnam achieve lifetime financial security and live healthier lives with Sun Life,” said Mr. Léo Grépin, President, Sun Life Asia. Mr. Larry Madge, CEO, Sun Life Vietnam added, “ACB is a leader in Vietnamese banking and shares our focus on delivering exceptional Client experience, leveraging digital and analytics, and providing innovative solutions. We look forward to working with ACB to secure a brighter future for their Clients in Vietnam.”
Mr. Tran Hung Huy, Chairman, ACB, shared: “ACB takes a long term view in selecting our exclusive bancassurance partner and we are excited to start the 15-year journey with Sun Life to bring the full suite of financial services to our customers”. Mr. Do Minh Toan, CEO and President, ACB, said: “Sun Life, with its strong legacy in insurance business globally and strong commitment to Vietnam, and ACB, with our execution excellence, will together build a leading bancassurance business in Vietnam.”
The Vietnam market offers significant growth potential for insurance, due to low penetration rates and an emerging middle class. Consequently, bancassurance business has been growing extremely quickly over the last several years and now contributes close to 30% of total life insurance sales. The partnership between Sun Life and one of Vietnam’s largest commercial banks is part of Sun Life’s long-term strategy to grow its distribution capacity, supported by bancassurance.