Sun Life inks US$75m Vietnam bank deal

November 27 2019 by Yvonne Lau

Sun Life Vietnam, a subsidiary of Canada’s Sun Life Financial, has signed a 15-year bancassurance agreement with Vietnam’s Tien Phong Commercial Bank (TPBank) worth C$100 million (around US$75 million).

Sun Life, which has 55 branches and customer care centres in the country, will make an initial payment of US$75 million, funded with internal resources in addition to ongoing, variable payments depending on the success of the partnership.

Under the arrangement, Sun Life’s life products will be available to TPBank’s network of 2.5 million customers, expanding the Canadian firm’s distribution reach in Vietnam and footprint in Asia.

The move follows in the footsteps of FWD’s recent 15-year bancassurance agreement with Vietcombank.

Leo Grepin, Sun Life’s Asean’s president and future Asia chief executive (from January 1), commented on the deal: “This bancassurance partnership demonstrates our focus on expanding our distribution network with world-class partners that share our goal of constant innovation.”

The Canadian firm has reiterated its strategic priority to be a leader in Asian markets through greater reach and distribution, in a region of low penetration and fast growth.

Grepin (pictured) noted in September: “Asia is the fastest growing pillar of Sun Life’s business, we have welcomed almost 16,000 new advisors and 6.4 million new clients in the last two years alone and last year our life sales growth outpaced the wider industry in all of our countries.”

In the past year, Sun Life invested in Hong Kong digital insurer Bowtie and announced its plans to increase its Chinese joint venture holding stake.

The story was revised on November 28 with a corrected deal figure.

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