Techcombank has announced its plan to invest in and establish TCLife – Techcom Life Insurance Joint Stock Company with a charter capital of VND 1.3 trillion. The bank will contribute VND 1.04 trillion, owning 80% of the shares, alongside Vingroup as a major shareholder. The life insurance market in Vietnam has significant potential, with a low population coverage rate (1.2% insurance premium to GDP). GDP is expected to grow by 7.09% in 2024 and 8% in 2025; household incomes are increasing. The proportion of families earning over $1,000 has risen significantly, indicating an improved ability to pay. Techcombank expects TCLife to incur losses in the first two years but to yield a net profit of VND 1.195 trillion after five years, with assets projected to increase from VND 728 billion to VND 16.081 trillion, marking a 22-fold growth.
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