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Banking & Finance

Hyundai Marine & Fire Insurance buys 25% of VietinBank Insurance

Released at: 17:38, 25/12/2018

Hyundai Marine & Fire Insurance buys 25% of VietinBank Insurance

Photo: VietinBank

Stock purchase agreement signed on December 21.

by Phi Linh

The VietinBank Insurance Joint Stock Corp. (VBI) signed a stock purchase agreement with South Korea’s Hyundai Marine & Fire Insurance Co. (HMFI) on December 21 in Hanoi.

South Korea’s No.2 non-life insurer will buy a quarter of VBI, or 16.6 million shares, in a move expected to speed up its expansion in Vietnam. 

“HMFI’s purchase of VBI’s shares, making it the second-largest shareholder, affirms its reputation in the field of non-life insurance and the attraction of the company among investors, especially foreign strategic investors operating in the same sector,” VBI’s General Director Le Tuan Dung said at the signing ceremony. “VBI commits to continuing to improve product quality, enhance customer services, and apply modern technology in accordance with the trends in insurance development in Vietnam.”

After the sale, VBI’s capital will increase to VND666.7 billion ($28.5 million). With this purchase contract, VBI will be supported with capital to enhance its financial capacity and competitiveness, producing impressive results in all of its operational segments.

According to HMFI’s CEO Mr. Lee Young Cheol, with more than 60 years of experience in the non-life insurance sector and a global network, the company wishes to cooperate with VBI and contribute practical and valuable experience to its development.

HMFI will focus on supporting VBI in the expansion of its customer network, especially South Korean customers in Vietnam, boosting new insurance products suitable for the local market, applying new technology in risk management, and conducting human resources training.

Positioned as a “pioneer in technology in the insurance industry”, VBI will invest in technology that will give it a competitive advantage thanks to greater financial resources coming from HMFI. It will deploy Insurtech technology to provide customers with a completely new experience in Vietnam’s insurance industry.

VBI is a subsidiary of Vietnam’s leading commercial lender VietinBank. It was set up just a decade ago but is now 13th out of Vietnam’s 30 non-life insurers in terms of market share. It has been recognized as one of the fastest-growing companies in the country and for its excellent customer service.

Hyundai Marine & Fire Insurance opened an office in Ho Chi Minh in 1997 and another in Hanoi in 2016. This latest deal will further help it expand its presence in the country as well as other Southeast Asian nations. The South Korean insurer anticipates that its acquisition of shares in VBI will allow the two to cooperate closely and create synergy.

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