France’s AXA Insurance Group will pay EUR54 million (US$450 million) to acquire 16.6 per cent stake in the Vietnam’s second largest non-life insurer, Bao Minh Insurance Corp, AXA said on September 12 in Ho Chi Minh City.
Vietnam's insurance sector has expanded rapidly in recent years, being supported by the country’s economic growth of 8 per cent in 2005 and 2006 and expected 8.5 per cent this year.
“We are interested in expanding our operations in promising markets with a good economic outlook,” said CEO Jan Van Den Berg of AXA's Asia-Pacific General Insurance.
With the alliance with French insurer, Bao Minh will gain access to AXA Group’s technical expertise and expand operations via AXA’s global insurance network, Bao Minh general director Tran Vinh Duc said.
The cooperation will also help Bao Minh diversify its insurance products, improve the quality of insurance services, promote technology application to build a Bao Minh strong brand name in the insurance sector in Vietnam, Duc added.
The stake sale to AXN, a world leader in financial protection, is part of Bao Minh’s plan to sell 32.1 million shares to raise its registered capital by 73.9 per cent to VND755 billion (US$47.2 million).
Bao Minh will sell the rest including 17.36 million shares to its existing shareholders and 2.17 million to staff 15.000, both at VND15,000.
Bao Minh is now holding 21.3 per cent non-life insurance market share in Vietnam, after state-run Bao Viet with 34.9 per cent. It gained total revenue of VND1.12 trillion in Jan-Aug, comprising 73 per cent of the full-year target, with the annual growth of 20 per cent.
Early this month, the Hanoi bourse-listed insurer signed a deal with Federal Insurance Company, a subsidiary of US-based Chubb Group of Insurance to provide special liability insurance services.
Bao Minh shares ended at VND85,500 on September 12. (Vietnamnet, VNA)
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