DB Insurance has announced that it will acquire subsidiaries of Century Insurance Company (CIC) in Guam, Saipan, and Papua New Guinea.
The South Korea-based insurer will buy 80% stakes in each of the subsidiaries in the Pacific markets, the Korea Times reported. CIC, which is among the top insurers in the mentioned territories, is owned by Tan Holdings, a Saipan-based firm that operates in several sectors, including information technology, financial services, logistics services, retail and wholesale distributions.
According to DB, it aims to expand in Papua New Guinea, which has abundant energy resources such as gas, oil, and coal, but where insurance penetrations remains very low.
Korean insurers, facing saturation and dwindling profits at home, are now focusing on overseas emerging markets to meet their growth targets.
“We will develop CIC into the most competitive insurer in Guam, Saipan and Papua New Guinea with the professional capabilities DB holds in the insurance business and Tan Holdings’ understanding of the local market,” said DB Insurance CEO Kim Jeong-nam.
DB said that the acquisition of CIC’s shares is expected to complete in the second half of 2019, pending approval from regulators.
