Techcombank plans to contribute capital to establish a life insurance company

The Board of Directors of Vietnam Technological and Commercial Joint Stock Bank (Techcombank; stock code: TCB) has just approved the final registration date to finalize the list of shareholders for collecting written opinions on two issues. First, approving the capital contribution to establish a life insurance company as a subsidiary of Techcombank. Second, approving the purchase of shares so that Technological and Commercial Non-Life Insurance Joint Stock Company (TCGIns) becomes a subsidiary of Techcombank.

Techcombank plans to contribute capital to establish a life insurance company.

Three months ago, in October 2024, Techcombank held a ceremony to establish Techcom General Insurance Joint Stock Company (TCGIns). This is the 31st insurance company in Vietnam, with a charter capital of VND500 billion, of which Techcombank contributes 11%. This move came right after Techcombank ended its exclusive bancassurance partnership with Manulife.

Through the capital contribution to establish the company, Techcombank continues to expand the comprehensive financial ecosystem, contributing to the dynamic development of the non-life insurance industry in Vietnam and increasing benefits for customers. With a strong financial foundation, and support from Techcombank and partners, Techcom Non-Life Insurance Company is expected to be able to build and develop the business to achieve the wishes of shareholders, state management agencies, and meet the needs of people and businesses.

Representative of Techcombank, Mr. Nguyen Anh Tuan - Director of Retail Banking, shared that inheriting the modern technology platform, large-scale customer base, quality and advanced management methods from Techcombank and strategic partners, Techcom non-life insurance company has outstanding advantages to not only be an important part of the Techcombank ecosystem but also develop strongly to meet the needs of the non-life insurance market.

Techcombank's leaders also emphasized that the bank wants to participate more deeply in the insurance product production process, not just be a distribution agent.

Currently, many banks such as BIDV and MB own subsidiaries in the non-life insurance sector, namely the Joint Stock Insurance Corporation of Vietnam (BIC) and the Military Insurance Corporation (MIC).

In addition, these two banking giants have joined forces with partners to build life insurance companies, completing the ecosystem. Accordingly, BIDV MetLife Life Insurance Company was established, a joint venture between MetLife Company Limited (under MetLife Group), BIDV and BIDV Insurance Corporation (BIC).

MB Ageas Life Insurance Company Limited (MB Ageas Life) is built on the basis of a joint venture between three partners: Military Commercial Joint Stock Bank (MB Bank) of Vietnam, Ageas Group from Belgium and Muang Thai Life Insurance Company from Thailand./.

Insurance cooperation activities bring 606 billion VND to Techcombank in 2024

According to the newly released financial report by Techcombank, the bank recorded a total operating income (TOI) of VND47 trillion in 2024, up 17.3% compared to 2023. Of which, net interest income from credit increased sharply by 28%, reaching over VND35.5 trillion, up 28% over the same period. Non-interest income brought in nearly VND11,500 billion. Of which, insurance cooperation services recorded nearly VND606 billion, accounting for about 5.5% of service income./.

Source: https://thoibaotaichinhvietnam.vn/techcombank-du-kien-gop-von-thanh-lap-cong-ty-bao-hiem-nhan-tho-169247.html