France’s AXA Group announced that it has reached an agreement to establish a strategic partnership in the Vietnamese insurance market with Bao Minh Insurance Corporation, the second largest player in the Vietnamese non-life insurance market with a 21 percent market share.
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As part of the agreement, AXA will acquire a 16.6 percent stake of the share capital of Bao Minh for a total amount of VND 1,194 billion (€54 million – $75 million).
AXA indicated that “Bao Minh is well positioned in all business lines and has a strong and diversified distribution network.” It specializes motor, property & engineering, maritime, aviation, and personal segments. Bao Minh earned VND1,468.2 billion (€65.7 million – $90.66 million) in gross written premium and VND100.7 billion (€4.5
Million – $6.2 million) in profit after tax in 2006.
“As part of the partnership, and in order to fully benefit from the growth prospects of the Vietnamese market, Bao Minh will have access to the technical expertise of AXA’s global and regional platforms,” the announcement added.
Completion of the agreement is subject to local regulatory approvals and is expected to take place before the end of September.
Source: AXA – www.axa.com
Topics Mergers & Acquisitions
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