Techcombank has officially partnered with Vingroup to establish Techcombank Life (TCLife), a new life insurance company with a charter capital of VNĐ1.3 trillion (approximately US$50.7 million).
As part of the agreement, Techcombank will contribute VNĐ1.04 trillion, securing an 80% stake and assuming control of the company. Vingroup, a conglomerate with a diverse ecosystem spanning real estate, retail, tourism, healthcare, and education, will join as a significant shareholder.
The collaboration leverages Techcombank’s financial expertise alongside Vingroup’s broad consumer base, positioning TCLife for strong market entry. TCLife plans to offer a comprehensive range of products, including seven life insurance options—whole life, pure endowment, term life, mixed insurance, annuities, and investment-linked insurance—as well as two health insurance offerings covering medical expenses and personal accidents.
The company aims to operate for 50 years, pending approval from the Ministry of Finance. Techcombank highlighted that despite rapid growth, Vietnam’s life insurance market remains underpenetrated compared to other regional markets, presenting a significant opportunity to expand its revenue through engagement with its existing customer base.
In terms of financial projections, Techcombank anticipates TCLife will generate a net profit of approximately VNĐ1.195 trillion within the next five years, yielding a return on investment of 23.4%.
This move follows the termination of Techcombank’s exclusive bancassurance agreement with Manulife, which included a compensation payment of VNĐ1.8 trillion. CEO Jens Lottner stated that the formation of TCLife aligns with the bank’s long-term strategy to expand its role in the production and provision of insurance products, rather than simply acting as a distributor.
On the stock market, Techcombank shares closed at VNĐ28,000 per share, marking a 2.4% increase from the previous session, while Vingroup’s shares reached the ceiling price of VNĐ56,700 per share.
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