South Korean DB Insurance acquires 75 per cent stake in Saigon - Hanoi Insurance Corporation
South Korean DB Insurance acquires 75 per cent stake in Saigon - Hanoi Insurance Corporation
DB Insurance continues its expansion in the Vietnamese insurance market with the acquisition of a 75 per cent ownership stake in Saigon - Hanoi Insurance Corporation (BSH), following its recent deal to acquire Aviation Insurance, positioning itself as a major player in the industry.
A consortium of 21 shareholders, including 19 individuals and two organisations, of Saigon - Hanoi Insurance Corporation (BSH), on June 13 entered into an agreement to transfer a substantial portion of BSH's equity.
This transaction involved the sale of 75 million shares, which corresponded to an ownership stake of 75 per cent in the company, to DB Insurance – a South Korean firm.
The execution of this deal is expected to follow either a matching order or an agreement through the UPCoM trading system, subject to the requisite approval from the Ministry of Finance and compliance with the relevant legal procedures.
Furthermore, the shareholder consortium has put forth a recommendation to the Board of Directors of BSH, urging the inclusion of this matter on the agenda for the upcoming AGM scheduled on June 20, 2023. This proposal is to seek approval for an exemption from the requirement to conduct a public tender offer.
BSH, an affiliate of the T&T Group ecosystem, is currently under the leadership of chairman Do Quang Vinh. The company has been recognised as one of the fastest-growing entities in the Vietnamese insurance industry. It has established strategic partnerships with renowned global insurance giants such as Swiss Re, Munich Re, CCR, Korean Re, Trans Re, and Catlin. BSH presently operates through a network of 52 subsidiary units, with nearly 90 business divisions serving clients nationwide.
IDBI has also made significant strides in expanding its market presence. In February, the company finalised a pact to acquire a controlling stake of 75.18 per cent in Aviation Insurance Corporation by procuring 75.18 million shares. Subsequently, DB Insurance will assume the role of the parent company, with a 75 per cent ownership interest, thus gaining control over the operations of Aviation Insurance.
DB Insurance Co., Ltd (DBI), which forms an integral part of the DB Group ecosystem, stands as a leading non-life insurance provider in South Korea. The company has garnered a distinguished reputation for its unwavering commitment to sustainable practices and has been consecutively listed on the Dow Jones Sustainability World Index for several years.
As of the close of 2022, DBI's total assets soared to $48.93 billion, and the company achieved direct insurance premium income of $12.56 billion, exemplifying its robust financial standing.
