With an eye on Vietnam's burgeoning middle class Vietcombank selected Switzerland's second largest lender to advise it on capturing further growth opportunities.
The Asian insurance market is seen as the fastest growing insurance market in the world. Hanoi-based Vietcombank is joining the fray mandating Credit Suisse to advise it on finding an insurance distribution partner. The deal, expected to be inked for at least 10 years, could be be worth as much as $1 billion, according to «Viet Nam News».
Scale and Size
Asia, with its huge population size and rapidly emerging middle class, has drawn international insurers keen to exploit local bank distribution corridors. Vietnam alone is currently home to an estimated 95 million inhabitants.
A number of lucrative long term distribution deals have been struck in Asia recently. In January this year DBS Bank and Chubb announced a 15-year regional general insurance distribution partnership agreement. The 15-year deal is estimated to be valued at up to $350 million, and covers Singapore, Hong Kong, China and Taiwan.
In 2017 Allianz announced a deepening of its partnership with Thailand's Sri Ayudhya Capital PCL creating an enhanced insurance franchise in the country. Standard Chartered Bank and Zurich Insurance Group also signed an exclusive decade long strategic partnership to offer life insurance in 2017.
