Techcombank establishes life insurance company with partners

(NLDO) - TCLife Life Insurance Company is expected to have a charter capital of 1,300 billion VND, of which Techcombank contributes 80% of shares, the rest is contributed by Vingroup.

In the plan to contribute capital and buy shares of Vietnam Technological and Commercial Bank (Techcombank) to establish Technological and Commercial Life Insurance Joint Stock Company (TCLife) just announced, this bank said that TCLife's charter capital is expected to be 1,300 billion VND.

Of which, Techcombank plans to contribute 1,040 billion VND, equivalent to 80% of capital.

TCLife plans to operate 7 life insurance businesses and 2 health insurance businesses. Mr. Jens Lottner, General Director of Techcombank, will hold the position of General Director of this insurance company.

The term of operation of this enterprise is determined to be 50 years from the date of issuance of the license to establish and operate.

According to Techcombank, when established, TCLife will gather the strengths of two major shareholders such as businesses in the Vingroup ecosystem, financial potential, and a large customer base of banks and corporations.

Techcombank's expected income from TCLife insurance distribution activities - Source: Techcombank

According to Techcombank, after 5 years of TCLife's operation, the bank is expected to receive a net profit of VND1,195 billion, a profit margin equivalent to 23.4%.

In addition to the above income, this insurance company also helps the bank increase net assets for shareholders, including Techcombank, thereby increasing the bank's position in the financial market.

It is expected that TCLife's total assets in the first year will be 728 billion VND and in the 5th year it is expected to reach 16,081 billion VND.

Prior to the establishment of TCLife Insurance Company, Techcombank terminated its exclusive life insurance distribution contract with Manulife in October 2024. Techcombank and Manulife have cooperated since 2013.

On the same day, Techcombank also passed a resolution to buy back shares so that Techcombank Non-Life Insurance Joint Stock Company (TCGIns) could become a subsidiary.

TCGIns's charter capital is currently VND500 billion. Techcombank plans to buy back 57% of NewCo Investment and Development JSC's shares at TCGIns, equivalent to 28.5 million shares at VND10,000/share. After this transaction, Techcombank will hold 68% of shares at TCGIns.

Source: https://nld.com.vn/vingroup-gop-20-von-lap-cong-ty-bao-hiem-nhan-tho-196250321184246529.htm