South Korea's Hyundai Marine & Fire Insurance has announced it will acquire a 25% stake of VietinBank Insurance (VBI).
VBI will issue 16.7m shares to HMFI to raise the its charter capital to VND667bn ($28.5m). The deal is expected to be completed in the first half of 2019 after the Ministry of Finance approves in principle the charter capital change, reports Vietnam News.
VBI held its annual general meeting of shareholders (AGM) to approve the capital hike plan through the private placement of shares to foreign investors.
According to the document submitted to the AGM, three foreign investors had by June 2018 sent official offers to VBI. After consideration, Hyundai was selected.
Experts say that foreign investors are entering the Vietnamese market because of its high growth. Vietnam’s insurance sector has targeted revenue of VND129.2trn this year, which would be an increase of 22.4% compared to 2017. If it hits the target, it would be the fifth consecutive year of annual growth of more than 20% for the insurance industry. The sector’s total revenue surged by 21.2% to VND105.6trn in 2017.