VietinBank and Manulife announce exclusive 16-year bancassurance partnership

HANOI, Vietnam, Dec. 14, 2020 /PRNewswire/ -- Vietnam Joint Stock Commercial Bank for Industry and Trade ("VietinBank") and Manulife Financial Corporation ("Manulife") are pleased to announce that an agreement has been signed between VietinBank and Manulife (Vietnam) Limited ("Manulife Vietnam") to establish an exclusive 16-year bancassurance partnership to better meet the growing financial and insurance needs of the Vietnamese people.

Manulife Vietnam will be the exclusive provider of bancassurance solutions to VietinBank customers in Vietnam soon after regulatory approval is obtained. This partnership will help to grow and further protect the health and wealth of Vietnamese individuals, families and businesses by offering best-in-class insurance, wealth and retirement solutions. As part of the transaction, Manulife Financial Asia Limited will also acquire Aviva Vietnam Limited ("Aviva Vietnam"). The acquisition of Aviva Vietnam will be subject to regulatory approvals. Manulife expects the partnership to be accretive to diluted core earnings per common share[1] in 2022 and the impact on the LICAT ratio is expected to be less than 1%.[2]

Manulife Vietnam is currently Vietnam's number one life insurer by 2019 annual premium equivalent (APE) sales.[3] Having entered Vietnam in 1999 as the first foreign-owned insurer to be granted a license, it now has around 1,000 permanent staff and over 50,000 contracted agents, serving more than one million customers. This new partnership with VietinBank will significantly grow Manulife Vietnam's distribution capabilities across the country and strengthen Manulife Vietnams's market leading position in Vietnam.

VietinBank is one of Vietnam's largest financial institutions, serving more than 14 million customers through a network of over 150 branches and 1,000 transaction offices across 63 cities and provinces in the country. In the first half of 2020, VietinBank was ranked number one in terms of bancassurance sales among state-owned banks in Vietnam.[4] VietinBank began its transformation journey in 2014, advancing its digital capabilities, increasing its investment in human resources, and enhancing its customer-centric solutions to be the leading bank in the country. The bank's strategy in the coming years is focused on diversifying its businesses, including growing its retail banking business and offering more tailored solutions for its customers.

Mr Lê Đức Thọ, Chairman of VietinBank said: "VietinBank and Manulife Vietnam have strengths and ambitions that complement each other – in particular, our strong shared focus on providing customer-centric financial products, services and solutions to Vietnamese individuals, families and businesses. The signing of the agreement is an important milestone that marks our cooperation with Manulife Vietnam. We believe that the relationship between VietinBank and Manulife Vietnam will grow strongly as we progress towards our vision of being the leading and most reputable bank in Vietnam, providing the most comprehensive and effective financial solutions to our customers."

Roy Gori, Manulife President and CEO, said: "We are extremely pleased to enter into partnership with VietinBank, Vietnam's leading bank. We share an ambition to accelerate digital transformation to make lives better for millions of people across Vietnam. This partnership increases our market share leadership in Vietnam and capitalizes on our strong position as one of the leading international life insurers in Asia, further progressing our growth trajectory in the region."

Anil Wadhwani, Manulife Asia's President and CEO said: "We are very excited to expand our ability to support improved health and retirement outcomes for a rising, more digitally enabled population in Vietnam through this partnership. Vietnam is one of the region's greatest economic success stories. Partnering with VietinBank means that we have even more opportunities to address the health, protection, savings and investment needs of customers in Vietnam and to make the lives of millions more Vietnamese every day better."

Manulife Vietnam will work closely with VietinBank to design and offer a full suite of insurance, wealth and retirement products that serve the needs of all key customer groups in Vietnam. These products will be distributed through a professional and well-trained sales force supported by the latest digital tools and processes.

Please refer to https://www.manulife.com/content/dam/corporate/global/en/documents/news/2020/transaction-summary.pdf for additional information related to this transaction. For this transaction, VietinBank is advised by Credit Suisse and Manulife Vietnam is advised by Morgan Stanley.

About VietinBank

Vietnam Joint Stock Commercial Bank for Industry and Trade ("VietinBank") is a leading commercial bank that plays an important role and is the mainstay of the Vietnamese banking industry, with a total asset value of more than 55 billion USD. According to the ranking on the international market in 2020, VietinBank is the only Vietnamese bank to be ranked in the Top 300 Most Valuable Bank Brands in the world for two consecutive years according to Brand Finance and nine consecutive years in the Top 2000 World's Largest Enterprises according to Forbes Global 2000. VietinBank currently has over 24,000 employees with a network operating throughout the territory of Vietnam, including its Head Office in Hanoi and having more than 150 branches, 1,000 transaction offices and a network of subsidiaries operating in different business segments, such as securities, fund management, insurance, money transfer, financial leasing, VietinBank Lao Limited, and two branches in Germany among others. VietinBank has continuously researched and innovated under the mission of being "Customer Oriented – Customer Centric" in order to implement new breakthrough business solutions and provide total solutions for banking and financial services for each customer group. This includes developing digital-first products and services through the use of technology, especially in the payment sector, to meet customer needs. VietinBank will continue to innovate, seize market opportunities, concretize development strategies in accordance with new requirements, and realize the goals in the 10-year development strategy 2021-2030 and with the vision to 2045 of the bank. This includes improving the quality of growth, strongly improving business efficiency with a vision of being the leading and most reputable  bank in Vietnam, in regional, modern, multi-functional, according to international standards, in the Top 20 effective banks in Asia Pacific

About Manulife Vietnam

At Manulife Vietnam, we help people protect their loved ones, grow their wealth, improve their health and build a better future. Our digital transformation includes investing heavily in technology that delivers innovative new life insurance services and solutions to the people of Vietnam so they can live every day better. With more than one million customers, over 50,000 advisers, strong distribution partnerships, and a network of 86 offices across the country, Manulife is proud of its 21-year history as the first foreign-owned life insurer in Vietnam. Learn more at www.manulife.com.vn.

About Manulife

Manulife Financial Corporation is a leading international financial services group that helps people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we operate as Manulife across our offices in Canada, Asia, and Europe, and primarily as John Hancock in the United States. We provide financial advice, insurance, and wealth and asset management solutions for individuals, groups and institutions. At the end of 2019, we had more than 35,000 employees, over 98,000 agents, and thousands of distribution partners, serving almost 30 million customers. As of September 30, 2020, we had C$1.3 trillion (US$943 billion) in assets under management and administration, and in the previous 12 months we made C$31.2 billion in payments to our customers. Our principal operations are in Asia, Canada and the United States where we have served customers for more than 155 years. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong.

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