Release Date: December 23rd ,2010
Fubon Life Insurance (Vietnam) Co., Ltd. Has Officially Approved by Vietnam’s Ministry of Finance of its Operation on December 23rd and Plans to start operation in Q1, 2011.
Fubon FHC reaches another milestone in its exploration of Vietnam Market! This announcement marks the milestone of Fubon Life’s first entry in the Vietnam market after Fubon Property Insurance and Taipei Fubon Bank under Fubon FHC. Fubon Financial Holding Company announced today that the Fubon Life Vietnam, it’s fully owned subsidiary of Fubon Life has officially granted the business license from the Ministry of Finance of Vietnam. It will set up its branch office both in Hanoi, the capital of Vietnam and Ho Chi Ming City simultaneously and plans to have its grand opening in the first quarter of 2011.
Richard Tsai, Vice President of Fubon FHC and Chairman of Fubon Life noted that, with the rapid economic development of Vietnam, Fubon Life will duplicate its success in Taiwan to design local-oriented products in compliance of Vietnamese regulation to provide the best insurance service in the market. With the entry of Fubon Life, Fubon FHC’s operation in Vietnam has spanned across banking, property insurance and life insurance. The “tripod” of Fubon will definitely become the best financial and insurance partner of Taiwanese enterprises and local residents in the country!
The statistics shows that the per capita income of Vietnam has been increased rapidly in recent years to US$1.056 (approx. NT$33,800). According to the data from Vietnam Insurance Association, the total premium income in the Vietnam life insurance market from January to September this year has reached VN$9.767 trillion (US$490 million), which is 25.1% higher than the same period of 2009. The number of valid policies has reached 4,143,063 by the end of September, which is 4% higher than the pervious year. However the life insurance penetration rate is only at 5%, which shows that Vietnam has a great potential for growth as an emerging life insurance market.
Shih Bao-Jung, Vice Chairman of Fubon Life, noted that the approval of the Vietnam subsidiary marks an important milestone for Fubon Life. Entering the Vietnam market has made Fubon Life an important regional player in Asia. With the full support of Fubon Life Taiwan and Fubon FHC, Fubon Life Vietnam will leverage the successful experience in Taiwan life insurance market to build brand awareness and expand the market with the professional distribution network.
Shih further noted that in an emerging market like Vietnam, developing a professional sales force and strong back office support to promote the concept of insurance is the key for Taiwanese insurance companies to succeed in the local market. In the beginning, Fubon Life will proceed steadily and surely by focusing on the demand for protection to offer the best life insurance products and services to the Taiwanese businessmen and local citizens in Vietnam.
Shih noted that Fubon Life Vietnam has been sparing no efforts in collecting local market data since the preparation stage, expecting to build a CRM database as soon as possible to analyze customer profile to offer differentiated products for different channels and target audience. Fubon Life will also adopt a flexible marketing strategy to expand the service network in Vietnam.
Fubon Life Steadily and Surely Realizes the Vision of Becoming the “Best Financial Institution in Asia”
Fubon Life has demonstrated the merger synergy by accumulating a new premium income of NT$290.08 billion from January to November this year (2010) and achieving a market share of 26.76%, which is 63.02% higher than the previous year. Being the second largest life insurer in the market, Fubon Life has topped the industry by recording the most new premium income four months in a row from July to October this year. The brilliant performance has helped it won numerous recognitions from the industry. Fubon FHC and Fubon Life again defended the title as the Most Admired Financial Holding Company and the Most Admired Insurance Company awarded by the CommonWealth Magazine. Fubon Life has also been awarded by Global Views Monthly and Next Magazine as the Best Service Insurance Company and the Life Insurance category of the Top Service Award respectively in 2010. It also claimed 10 awards in the 12th Faith, Hope and Love Awards of Insurance in 2010.
The statistics and data quoted in the press release are excerpted from the official website of Vietnamese government and are for reference only.
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