South Korea-based insurer Mirae Asset Life Insurance Co. has agreed to buy a 50% stake in Prevoir Vietnam Life Insurance, marking its first venture into the Southeast Asian country’s market.
If the transaction, which is estimated to be worth KRW60 billion (US$52.6 billion) is successful, Mirae Asset Life Insurance will form a 50:50 joint venture with French firm Groupe Prévoir, reports Pulse News.
Previor Vietnam is the 10th largest life insurer in the country, with a VND39 billion (US$1.7 million) profit in 2016. However, the firm still had accumulated losses of VND216.65 billion (US$9.52 million) by the end of the fiscal year.
It was reported that Mirae Asset had outbid a competitor from China to secure the deal, and that it is expected to be completed by the end of the year once it secures approval from regulators in both Vietnam and South Korea.
More and more international insurers have entered ventures in Vietnam in recent months, with Samsung Fire & Marine acquiring a 20% stake in PJICO, the insurance arm of Petrolimex, Vietnam’s largest petrol firm. British insurer Aviva and Canadian insurer Sun Life also bought out the entirety of their Vietnamese joint ventures.
Related stories:
Korean insurers turn to Vietnam for expansion
Emerging markets prime drivers of re/insurance growth, says EY
Foreign capital dominates Vietnam’s insurance industry
