Techcombank and Manulife Vietnam end exclusive cooperation after many years - Photo: QUANG DINH
Vietnam Technological and Commercial Joint Stock Bank - Techcombank (TCB) recently met with analysts and updated its business results for the third quarter of 2024.
In a new update on Techcombank's insurance business, the bank's leaders have provided noteworthy information.
Accordingly, in the context of many changes in the market and strategies of both sides, along with new requirements of the Law on Insurance Business, Techcombank and Manulife Vietnam have decided to terminate their exclusive partnership from October 14, 2024.
After this date, Manulife insurance products will stop being distributed through Techcombank channel.
Techcombank affirmed that it will continue to guide customers to contact Manulife when there are requests regarding signed insurance contracts.
Under the terms of the original cooperation agreement, Techcombank will pay Manulife a termination fee equivalent to VND1,808 billion.
This fee is expected to be recorded in the bank's operating expenses in its fourth quarter 2024 financial report.
Mr. Jens Lottner - CEO of Techcombank - said that the bank has also contributed capital to establish Techcom Non-Life Insurance Joint Stock Company (TCGIns).
Manulife Vietnam and Techcombank began their strategic partnership in 2013. The two parties then signed a 15-year exclusive insurance cooperation agreement.
This agreement allows Manulife Vietnam to provide life insurance solutions to all Techcombank customers, aiming to achieve more than VND10,000 billion in insurance premiums in the next 5 years.
How does Techcombank make money from exclusive insurance distribution for Manulife?
The third quarter 2024 financial report shows that revenue from insurance service fees brought Techcombank VND 594 billion, an increase of 29.8% over the same period.
Last year, Techcombank's revenue from insurance cooperation only reached VND667 billion, down 62% compared to 2022 after the market experienced a crisis of confidence in insurance.
Source: https://tuoitre.vn/cham-dut-hop-tac-bao-hiem-techcombank-phai-chi-1-800-ti-cho-manulife-20241023183557059.htm
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