MetLife Inks Vietnam Life Insurance JV - Update

(RTTNews) - MetLife, Inc. (MET), Bank for Investment & Development of Vietnam or BIDV and Bank for Investment and Development of Vietnam Insurance Corp. or BIC have signed an agreement to establish a life insurance joint venture in Vietnam.

The JV follows the Memorandum of Understanding that was signed by both parties in July. It also delivers on a key component of MetLife's strategy of expanding its presence in emerging markets. The JV also represents BIDV's strategic direction into the field of life insurance.

The new JV will have a charter capital of VN$1 trillion or about $48 million. MetLife will own 60 percent of the company while BIDV and BIC will have the remaining 40 percent.

The JV, expected to be operational in 2014, will initially focus on offering life and health insurance products. Alongside the JV, there is also an exclusive bancassurance distribution agreement between the JV and BIDV.

MetLife said that through the JV, Vietnamese consumers will benefit from access to its global expertise, financial reliability and innovative products and services. The JV will also leverage BIDV's understanding of the financial needs of Vietnamese customers.

Chris Townsend, president, Asia for MetLife, said, "This JV agreement between MetLife and BIDV expands MetLife's footprint into fast growing Southeast Asia and highlights our commitment to the country."

MET closed down 0.6 percent on Thursday at $47.58.