Financial services giant Aviva has agreed to sell the entire shareholding of its wholly owned life insurance business in Vietnam to Manulife for an undisclosed all-cash consideration.
The transaction is subject to certain closing conditions, including regulatory approval, and is expected to complete in the second half of 2021.
The move follows Aviva’s sale of its Singapore business, as the firm looks to exit non-core operations in both Asia and mainland Europe.
As part of the transaction, Manulife will enter into a 16-year distribution agreement with Aviva Vietnam’s existing exclusive bancassurance partner Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank).
This partnership will help to grow and further protect the health and wealth of Vietnamese individuals, families and businesses by offering insurance, wealth and retirement solutions.
Roy Gori, Manulife president and chief executive, said: “We are extremely pleased to enter into partnership with VietinBank, Vietnam’s leading bank. We share an ambition to accelerate digital transformation to make lives better for millions of people across Vietnam.
“This partnership increases our market share leadership in Vietnam and capitalizes on our strong position as one of the leading international life insurers in Asia, further progressing our growth trajectory in the region.”