PVI Holdings (HNX: PVI) and Sun Life Financial Inc. (TSX: SLF) Thursday signed an agreement to form a joint venture life insurance company, PVI Sun Life Insurance Co. Ltd.
PVI Sun Life will deliver a suite of life insurance products to customers in Vietnam through multiple sales channels. The company, which further expands Sun Life’s footprint in Asia, aims to become a market leader in the sector.
PVI will own 51% of PVI Sun Life, and Sun Life the remaining 49%. Financial details were not disclosed.
PVI is an investment and insurance company with subsidiaries focused on general insurance, reinsurance, life insurance and other financial services. Sun Life will contribute life insurance expertise, particularly in the areas of actuarial, risk management and distribution management to the joint venture.
“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 Nguyen Anh Tuan, chairman of PVI Holdings, in a release. “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.
“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. “With PVI, we feel confident that we have the right partner to become a market leader in Vietnam.”
The companies believe Vietnam’s life insurance market is poised for growth. 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.