Mirae Asset Life Looks to Acquire 50% Stake of Prevoir Vietnam Life

Tuan Minh

09:47 26/06/2017

BizLIVE - The investment will help form a 50:50 partnership with Groupe Prévoir, French insurance company that is now the largest shareholder in Prevoir Vietnam Life Insurance.

Mirae Asset Life Looks to Acquire 50% Stake of Prevoir Vietnam Life

A screenshot of Prevoir Vietnam Life Insurance's website.

South Korea’s Mirae Asset Life Insurance Co. is planning to acquire a 50% stake of Prevoir Vietnam Life Insurance, the 10th largest life insurer in Vietnam, to join the fast-growing insurance market, the Pulse news website cited insurance industry sources as saying.
According to an agreement inked between Mirae Asset Life Insurance and Prevoir Vietnam Life Insurance, the former will acquire a 50% stake in the Vietnamese life insurer through new shares issued by the Vietnamese firm.
The investment will help form a 50:50 partnership with Groupe Prévoir, French insurance company that currently owns 91.5% in Prevoir Vietnam Life Insurance. The equity for purchase reportedly is worth $52.6 million.
Mirae Asset Life Insurance reportedly secured the stake in Prevoir Vietnam Life Insurance after winning another Chinese bidder, said an unnamed finance industry official.
The Korean life insurer expects to complete the equity acquisition process by the end of this year after getting approval from Korean and Vietnamese financial regulators. Any company intending to invest in an insurance company in Vietnam must gain approval from the Vietnamese finance ministry.
According to Vietnamese insurance association, Vietnam’s insurance market had expanded at an average annual growth rate of around 20.7% from 2010 to 2015.
Established in 2005, Mirae Asset Life Insurance is now South Korea’s fifth largest life insurance company in terms of assets after acquiring PCA Life Insurance Co., a subsidiary of U.K.-based Prudential Plc in November last year.
Hanwha Life is the sole South Korean life insurer operating in the Vietnamese life insurance market, which is dominated by foreign big names such as Prudential, Manulife, ACE Life, and Dai-ichi.
According to Prevoir Vietnam Life’s financial statement, the firm had a profit of 39 billion dong ($1.72 million) in 2016, versus a loss of 56.4 billion dong in 2015. Its total assets soared 84% year-on-year to 2.6 trillion dong ($114.8 million) at end-2016.

TUAN MINH

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