Two US Insurers Licensed to Operate in Vietnam

Two US Insurers Licensed to Operate in Vietnam

Two US-based insurers, including New York Life Insurance Company (NYL) and ACE INA International Holdings Ltd., on June 22, have received licenses to establish their wholly foreign-owned insurance companies in Vietnam with the first being AIA.

These firms were granted the licenses from the Vietnamese Ministry of Finance at a ceremony in Washington, D.C., witnessed by Vietnam’s Prime Minister Phan Van Khai and US Department of Commerce Secretary Carlos M. Gutierrez.

This is considered a significant event in the six-day visit of the first Vietnamese leader to the US in an effort to promote diplomatic and trade relations between the two countries.

Sy Sternberg, chairman and chief executive officer of New York Life, said, "We are very gratified with Vietnam's decision. New York Life will share its 160-year experience and aim to become an active member in the Vietnamese insurance market.”

"We are committed to demonstrating our reputation for financial strength, integrity and humanity as we prepare to serve the people of Vietnam."

NYL has been waiting for five years to get an operating license in Vietnam since opening a representative office in the country in 2000. In 2003 and 2004, the company made active efforts to enter the market but then shifted its focus, as the license was not forthcoming.

New York Life plans to invest US$10 million through its branch in Vietnam and expects the company's business there will secure an annual growth rate of 20 per cent per year in the long-term period.

The insurer is globally known for its fast satisfaction of customers’ demands, and commitment to bring innovative products and a highly trained agent force.

Gary Benanav, chairman of New York Life International, said, "This license to operate in Vietnam is a further step in solidifying New York Life's presence as a leader in life insurance in Asia and follows our recent expansion into other important Asian markets.

Meanwhile, ACE Life will be operated in Vietnam with total investment capital of US$20 million.

The firm entered Vietnam in 1996 and set up representative offices in Hanoi and Ho Chi Minh City.

Up to now, six life insurance companies operate in Vietnam, including four wholly foreign-invested companies, one joint venture and one State-owned.

Vietnam opened its insurance market to foreign competitors in the late 1990s. The insurance market has been opened for the US’s AIA, the UK’s Prudential, Canada's Manulife, Australia’s CMG, France’s Groupama, Singapore’s Great Eastern and China’s Ping An.

• P.V