Techcombank wants to establish a life insurance company

Techcombank wants to establish a life insurance company with capital of at least VND1,300 billion to increase competitiveness.

Techcombank muốn lập công ty bảo hiểm nhân thọ - Ảnh 1. — Techcombank wants to establish a life insurance company - Photo: QUANG DINH

Life insurance company with minimum charter capital of 1,300 billion

According to the proposal to ask for shareholders' opinions, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) plans to establish Technological and Commercial Life Insurance Joint Stock Company (TCLife), with a minimum charter capital of VND1,300 billion and Techcombank will own at least 50% of the company's capital.

Techcombank believes that the life insurance market in Vietnam still has a lot of potential and opportunities for development.

In addition, it helps banks proactively provide diverse and superior products to customers, bringing financial benefits such as: receiving fee revenue at competitive rates, along with increasing the total asset value from capital contributions at life insurance companies.

Previously, at the end of 2024, Techcombank terminated its exclusive insurance distribution agreement with Manulife and completed paying a fee of VND 1,800 billion to Manulife.

The market still has a lot of potential.

Similarly, with non-life insurance, Techcombank believes that Vietnam's non-life insurance has grown steadily and sustainably over the years, and Techcombank's increased investment capital at TCGIns will help increase pre-tax profit on Techcombank's annual consolidated financial statements.

Therefore, Techcombank will spend VND285 billion to buy back 57% of Techcom Non-Life Insurance Joint Stock Company (TCGIns) from its largest shareholder, NewCo Investment and Development Company. Thanks to that, Techcombank's ownership here increases from 11% to 68%.

TCGIns currently has a charter capital of 500 billion VND, newly established in October 2024. This enterprise provides products such as property insurance; insurance in the fields of goods transportation, aviation, motor vehicles and health insurance services...

Techcombank muốn lập công ty bảo hiểm nhân thọ - Ảnh 3.

Many banks earn big profits from cross-selling insurance

Many banks have recorded good growth again in the insurance business and services sector. This is a positive signal for the bancassurance channel (cross-selling insurance through banks) after a difficult period.

Source: https://tuoitre.vn/techcombank-muon-lap-cong-ty-bao-hiem-nhan-tho-20250221213950385.htm