Japan’s Asahi Mutual Life Insurance Company has entered into a definitive agreement to acquire Vietnamese life insurance company MVI Life from Manulife Financial Corporation.

The all-cash transaction is valued at approximately 26.3 billion yen ( US$170 million ). Asahi Life says the acquisition, its first-ever overseas M&A deal, is a major step in the company’s strategy to expand into high-growth Asian markets as part of its fiscal year 2024–2026 management plan.

The deal is made through The Manufacturers Life Insurance Company, a subsidiary of Manulife and the current owner of MVI Life.

Strategic push into Southeast Asia

Asahi Life is transitioning from its current consulting and agency operations to full-scale overseas life insurance underwriting. The Japanese insurer, which has had a presence in Vietnam since 2017 through consulting, sales, and product development partnerships, plans to integrate its own expertise into MVI Life’s existing operations. It will focus on developing and offering innovative products in areas where it has deep experience in Japan, including health and cancer insurance, elderly care, and critical illness products.

To accelerate this strategy, the new company will collaborate with insurtech firm LivWell, which specializes in insurance services and wellness platforms in Vietnam, as its technology consultant and health ecosystem partner.

Asahi Life intends the expanded overseas business to become a stable, future pillar of revenue alongside its domestic sales channels, targeting the Vietnamese market with more than 100 million people.

Manulife refocuses core business

For Manulife, the sale of MVI Life allows the Canadian financial group to simplify its focus on its market-leading entity, Manulife Vietnam.

MVI Life, formerly Aviva Vietnam before it was acquired by Manulife in 2021, has operated as a separate entity managing its existing customer portfolio, with a focus on quality customer service. MVI Life generated approximately US$93 million in insurance premiums in 2024.

“This agreement aligns with our strategic focus and continued commitment to Vietnam,” says Manulife Asia president and CEO Steve Finch. “Upon regulatory approval and completion, the transaction will allow us to dedicate our entire focus on serving our customers in the country through Manulife Vietnam, an important market and business for Manulife Asia since 1999.”

Manulife Vietnam is one of the country’s leading life insurers, serving nearly 1.5 million customers through an extensive network of more than 60 offices, nearly 1,000 employees, over 50,000 agents, and an exclusive bancassurance partnership with VietinBank.

Asahi Life and Manulife say they are committed to ensuring a smooth transition for MVI Life’s customers, partners, and employees. All existing MVI Life policies will be fully honoured.

The transaction is subject to regulatory approvals in Japan and Vietnam.