HÀ NỘI — 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 VNĐ1.3 trillion (US$49.7 million) and an 80 per cent 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 Trần Duy Hưng Street, Yên Hòa Ward, Hà Nội. Chung Bá Phương 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 VNĐ1.04 trillion to TCLife, equivalent to 80 per cent of the company’s charter capital. The remaining 20 per cent 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 year three, with projected net earnings of VNĐ605 billion. By year five, the company’s accumulated profit could reach nearly VNĐ1.2 trillion, corresponding to a return on equity of around 23.4 per cent.

The company also anticipates significant growth in total assets, from VNĐ728 billion in its first year to VNĐ16.081 trillion by its fifth year – a 22-fold increase.

The move comes after Techcombank announced that its exclusive bancassurance partnership with Manulife will officially conclude on October 14, 2024. The bank said the establishment of TCLife reflects its long-term strategy to tap into the growth potential of Việt Nam’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 VNĐ285 billion to purchase a 57 per cent stake from NewCo Investment and Development JSC, raising its total ownership from 11 per cent to 68 per cent, 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 Việt Nam’s growing insurance market. — VNS