Hanoi (VNS/VNA) - Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has officially received approval from the Ministry of Finance to establish its life insurance arm, Techcombank Life Insurance Joint Stock Company (TCLife), with a charter capital of 1.3 trillion VND (49.7 million USD) and an 80% ownership stake.

The licence, issued under Decision No 100, allows Techcombank to set up TCLife to offer life insurance, health insurance, reinsurance and other related services in compliance with local regulations.

TCLife will be headquartered at Tower C5, D'Capitale, 119 Tran Duy Hung street, Yen Hoa ward, Hanoi. Chung Ba Phuong has been appointed as General Director and legal representative of the new entity.

According to a resolution passed by Techcombank’s Board of Directors on March 20, the bank will contribute 1.04 trillion VND to TCLife, equivalent to 80% of the company’s charter capital. The remaining 20% will be held by firms within the Vingroup ecosystem.

Under its business plan, TCLife is expected to operate at a loss in the first two years before turning a profit in the third year, with projected net earnings of 605 billion VND. By year five, the company’s accumulated profit could reach nearly 1.2 trillion VND, corresponding to a return on equity of around 23.4%.

The company also anticipates significant growth in total assets, from 728 billion VND in its first year to 16.08 trillion VND by its fifth year – a 22-fold increase.

The move comes after Techcombank announced that its exclusive bancassurance partnership with Manulife officially concluded on October 14, 2024. The bank said the establishment of TCLife reflects its long-term strategy to tap into the growth potential of Vietnam’s life insurance sector, driven by favourable demographic trends and rising household income.

In addition to enhancing its financial offerings, the new insurance venture is expected to generate revenue from premiums and create long-term asset value from Techcombank’s equity investment in the company.

Separately, in March 2025, Techcombank’s Board of Directors also approved a plan to acquire a controlling stake in Techcom Non-life Insurance Corporation (TCGIns). The bank plans to spend 285 billion VND to purchase a 57% stake from NewCo Investment and Development JSC, raising its total ownership from 11% to 68%, thereby turning TCGIns into a subsidiary.

The dual strategy of expanding into both life and non-life insurance signals Techcombank’s ambition to build a diversified financial services ecosystem and strengthen its position in Vietnam’s growing insurance market./.