Illustrative image. (Source: bloomberg.com)Hanoi (VNA) – Insurer FWD Group Ltd. isnearing an agreement to pay about 400 million USD for a unit of the Bank for Foreign Trade of Vietnam JSC (Vietcombank), and a long-terminsurance distribution agreement with the bank, Bloombergreported.
Billionaire Richard Li’s insurer, which isbased in HongKong (China), outbid competitors including Prudential Plc,said the news outlet.
As part of the deal, FWD will buy a business called Vietcombank Cardif LifeInsurance, which is owned by Vietnam’s biggestlender,and BNP Paribas SA’s life insurance unit Cardif.
In a so-called bancassurance transaction, an insurer typicallypays an upfront amount for exclusive rights to sell its products in bankbranches. That has been a popular way of expanding in Southeast Asia, an areaof mostly developing economies with young populations.
Shares of Vietcombank rose as much as 2.3percent two days ago in their biggest advance since September 13.
Li, the son of Hong Kong’s richest man, is making a big bet onSoutheast Asia as FWD paid 3 billion USD for a life insurancebusiness in Thailand in July. The insurer already has presence in Vietnamfollowing a small acquisition in the country in 2016.
Representatives for FWD, Vietcombank, BNPParibas and Prudential declined to comment but a reliable source said an officialannouncement could be weeks away./.
VNA
