British insurance firm Aviva has acquired 50 per cent stake in domestic insurance firm Vietinbank Aviva from the Viet Nam Joint Stock Commercial Bank for Industry and Trade (Vietinbank).

The deal, signed on Friday, has made Vietinbank Aviva (or Aviva Viet Nam) a wholly owned subsidiary of Aviva PLC. The value of the deal has not been disclosed.

It will help Aviva simplify its operations in the region and develop its business activities via key distribution channels.

Vietinbank Aviva was founded in 2011 as a joint venture between Vietinbank and Aviva, with each side holding half the capital. Since then, it has become one of the top 10 life insurance firms by premium, leading the bancassurance sector in Viet Nam.

Aviva also signed a new distribution agreement with Vietinbank, to sell life and health insurance products through the bank’s network of 1,100 branches and transaction offices.

“With Aviva’s insurance and digital expertise and a strong partnership with a leading bank, we are optimistic about our growth prospects in Viet Nam,” said Chris Wei, executive chairman of Aviva Asia and global chairman of Aviva Digital. “We have developed a deep and successful relationship with Vietinbank and will continue to build on our strong foundations.” — VNS