South Korean non-life insurer DB Insurance has announced the acquisition of Saigon-Hanoi Insurance Corporation (BSH), the ninth-largest property and casualty insurer in Vietnam.
The Hanoi-based firm was established in 2008 and has a market share of 4.5%, placing it within the top 10 of the 32 P&C insurers in the Southeast Asian country.
According to a report from KED Global, this latest acquisition is part of DB’s continued efforts into making headway in the Vietnamese market. In 2015, the South Korean insurer acquired a 37.2% stake in Post and Telecommunication Joint Stock Insurance (PTI); this insurer was ranked fifth in the P&C market before rising to its current third-place status.
Earlier this February, DB Insurance also entered a deal for a 75% stake in Vietnam National Aviation Insurance (VNI), the 10th insurer across market shares.
The insurer noted that the country’s high economic growth potential, young demography, external openness, and its access to other Southeast Asian countries make it a priority market in the region.
"We will complete the acquisition process, including domestic and international approvals, as soon as possible, and we will actively pursue establishing a stable management structure and enhancing business competitiveness based on the experience of growing PTI," a DB Insurance official said.
Elsewhere in the country, the Korea Development Bank (KDB) is marking a fifth attempt to sell off its life insurance unit, KDB Life Insurance.
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