Sun Life, PVI to form life insurance joint venture

Sun Life Assurance Company of Canada is partnering with Vietnam-based PVI Holdings to form a joint venture life insurance company, called PVI Sun Life Insurance Company Limited. The new company will deliver life insurance products to customers in Vietnam.

PVI will own 51% of PVI Sun Life, and Sun Life Financial the remaining 49%.

“PVI Sun Life completes PVI Holdings’ insurance business network, and delivers on our long term strategy. We are very excited about partnering with Sun Life, an internationally renowned life insurer, to deliver greater choice in life insurance to the people of Vietnam,” said Mr. Nguyen Anh Tuan, Chairman of PVI Holdings.

“We are…delighted to add Vietnam to our growing footprint in Asia, which we see as a meaningful contributor to Sun Life’s future growth and success,” said Dean Connor, president and CEO of Sun Life Financial. “With PVI, we feel confident that we have the right partner to become a market leader in Vietnam.”

“We believe this partnership will be of tremendous mutual benefit to our companies and, more importantly, will broaden the availability of much-needed financial products and services to the people of Vietnam,” said Kevin Strain, president of Sun Life Financial Asia.

Vietnam’s life insurance market is poised for growth. While the country has been one of the fastest growing economies in Asia in recent years, only 5% of the population currently has life insurance coverage.

The joint venture is subject to regulatory approval in both Canada and Vietnam and is expected to commence operations before the end of 2012.