Sun Life forms joint venture in Vietnam

MANILA, Philippines - Sun Life Assurance Co. of Canada, a wholly-owned subsidiary of Sun Life Financial Inc., has signed an agreement with PVI Holdings, a major Vietnamese insurance and investments player, to form a joint venture life insurance company called PVI Sun Life Insurance Co. Ltd. (PVI Sun Life). 

The new company is in line with PVI’s development strategy, and further expands Sun Life Financial’s footprint in Asia. PVI Sun Life will deliver a suite of innovative life insurance products to customers in Vietnam through multiple sales channels. The company aims to become a market leader in the sector.

PVI will own 51 percent of PVI Sun Life, and Sun Life the remaining 49 percent. PVI brings to the partnership its excellent reputation and brand in Vietnam as well as a strong customer base, extensive infrastructure and quality people.

Sun Life brings with it 150 years of experience and know-how in the life insurance space, including experience in the Asian market that dates back to 1892. 

Sun Life will contribute its global life insurance expertise, particularly in the areas of actuarial, risk management and distribution management to the joint venture.

PVI Holdings chairman Nguyen Anh Tuan said that PVI Sun Life completes PVI Holdings’ insurance business network, and delivers on its long-term strategy.

“Vietnam’s life insurance market has great potential and through PVI Sun Life we will be able to provide new products that are unique in the Vietnamese marketplace,” he added.

Sun Life Financial Asia president Kevin Strain that the joint venture “demonstrates Sun Life’s deep commitment to growing our business in Asia.” 

“It will broaden the availability of much-needed financial products and services to the people of Vietnam.”

 Sun Life Philippines president and chief executive officer Rizalina Mantaring expressed enthusiasm about the new joint venture agreement and cited how the Philippine operations can provide support to this new partnership.

“We are truly excited about this new partnership. The Philippine operations has been highly successful over its 117 years in the country, and we look forward to providing support to PVI Sun Life through the sharing of our experiences, capabilities and know how with our counterparts.” Mantaring added.

Vietnam’s life insurance market is poised for growth, providing an excellent opportunity for PVI Sun Life. 

While the country has been one of the fastest growing economies in Asia in recent years, only five percent of the population currently has life insurance coverage.

Last year, PVI generated gross premium of $202 million; total revenue growth was 25-percent year-on-year, equivalent to 116 percent of target. PVI currently enjoys a 21.3-percent market share of the non-life insurance market, making it the leading non-life insurer in Vietnam.