PVI Holdings (PVI) and Sun Life Financial sign an agreement to form a life insurance joint venture
PVI Sun Life will deliver world-class life insurance products to customers across Vietnam
TORONTO, Ontario, and Hanoi, Vietnam - PVI Holdings and Sun Life Assurance Company of Canada, a wholly-owned subsidiary of Sun Life Financial Inc., signed an agreement yesterday to form a joint venture life insurance company, PVI Sun Life Insurance Company Limited (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.
The joint venture agreement was signed by Mr. Nguyen Anh Tuan, Chairman of PVI Holdings, Mr. Bui Van Thuan, Member of the Board of Directors and CEO of PVI Holdings, and on behalf of Sun Life Financial, Mr. Dean Connor, President and CEO, and Mr. Kevin Strain, President, SLF Asia, in Hanoi, Vietnam. The event was attended by Mr. Nguyen Xuan Phuc, member of the Politburo and Deputy Prime Minister, representatives of Ministries, Agencies and Offices of the Government of Vietnam, Petrovietnam, and by Deborah Chatsis, the Canadian Ambassador to Vietnam.
"PVI Sun Life completes PVI Holdings' insurance business network, and delivers on our long term strategy. We are very excited about partnering with Sun Life, an internationally renowned life insurer, to deliver greater choice in life insurance to the people of Vietnam," said Mr. Nguyen Anh Tuan, Chairman of PVI Holdings. "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.
PVI will own 51% of PVI Sun Life, and Sun Life Financial the remaining 49%. 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 Financial 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 Financial will contribute its global life insurance expertise, particularly in the areas of actuarial, risk management and distribution management to the joint venture.
"When we look at Vietnam and our partnership with PVI Holdings, we see a great opportunity to offer our nearly 150 years of expertise to provide valued peace of mind to the people of Vietnam," said Dean Connor, President and CEO, Sun Life Financial. "We are also delighted to add Vietnam to our growing footprint in Asia, which we see as a meaningful contributor to Sun Life's future growth and success. With PVI, we feel confident that we have the right partner to become a market leader in Vietnam."
"We are thrilled about our new partnership with PVI in Vietnam," said Kevin Strain, President, Sun Life Financial Asia. "We are pleased to be partnering with such a well-respected organization as PVI. We believe this partnership will be of tremendous mutual benefit to our companies and, more importantly, will broaden the availability of much-needed financial products and services to the people of Vietnam."
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 per cent of the population currently has life insurance coverage.
The joint venture is subject to regulatory approval in both Canada and Vietnam and is expected to commence operations before the end of 2012.