Prudential Plc is competing with Hong Kong tycoon Richard Li’s FWD Group to become an insurance-distribution partner of Bank for Foreign Trade of Vietnam JSC, which is the biggest lender of the nation by market value, according to the industry’s sources.
FWD and Prudential Plc are amongst companies seeking to get the exclusive rights for distributing life insurance products via Vietcombank’s branch network, stated the people, refusing to reveal their identity because of the private matter. Vietcombank is anticipated to receive an initial payment of around $400 million & could receive more depending on the performance of the business, the people informed.
Credit Suisse Group AG has been advising Vietcombank on finding a new insurance-distribution partner, Bloomberg News first reported in June a year ago. A deal could be of value as much as $1bn over the life of the contract, reliant on how it is structured, the people reported.
There is still a continuity of negotiations and there has been no finalization of the decision, people reported. They told that other bidders could still emerge. Representatives for FWD, Prudential, and Vietcombank refused to comment.
Insurers have been appealed to a growing middle class in Vietnam. Bank for Investment & Development of Vietnam is also exploring, selling its stake in a life insurance joint venture with MetLife Inc., other people with knowledge of the matter have said.
According to its website, Hanoi-based Vietcombank has employed over 15,000 staff, with more than 500 outlets in the country’s capital & aboard. In 2007, the bank created a joint venture with BNP Paribas SA’s life insurance unit Cardif and Vietnamese lender SeABank for the development of insurance products. Vietcombank has set the aim of becoming the nation’s number one bank in 2020, its website confirms.