Ageas, a global insurance group, and Muang Thai Life Assurance have signed an agreement with Military Commercial Joint Stock Bank (Military Bank) to form a life insurance joint venture (JV) in Vietnam.

The new life insurance JV will be named as MB Ageas Life, in which Ageas will own 29% stake, Muang Thai Life Assurance will have an equity shareholding of 10%, while Military Bank will own remaining 61% equity.

Additionally, Military Bank and MB Ageas Life will ink a 15-year exclusive bancassurance agreement.

The JV, using the insurance expertise of Ageas and Muang Thai Life, will benefit from Military Bank’s network of 217 branches with more than 2 million customers.

Military Bank vice chairman Luu Trung Thai said: "As a top 3 private sector bank by assets in Vietnam and one of the most effective banks in the country, Military Bank has become a trusted partner of major financial institutions worldwide.

"According to our business strategy, we are committed to developing life insurance services as part of our comprehensive financial services products to our clients."

MB Ageas Life is likely to commence operations in 2016, following regulatory approvals and closure of customary conditions.