KB Insurance is the latest South Korean insurer to plan to invest in Vietnam. It will buy a stake in Vietnam's third biggest non-life insurance company so as to carve out a niche for itself in the Southeast Asian country's growing insurance market.
As South Korea’s major non-life insurance companies are seeking to push into the Vietnamese market, competition for acquisition of local insurance firms is also overheating.
KB Insurance is to acquire a 17% stake in Bao Minh Insurance, the third biggest insurance company in Vietnam with an 8.2% market share, reports Business Korea.
Bao Minh Insurance is under the control of State Capital Investment Corp (SCIC) which has a 50.7% stake. SCIC is run by Vietnam Asset Management Co.
KB Insurance will hold a board meeting early next month and decide on the stake acquisition plan. The company will sign a formal agreement as soon as the board of directors approves the proposal.
KB Insurance first entered the Vietnamese market by opening its office in Hanoi in 1995. The company additionally opened an office in Ho Chi Minh in 2001.
Earlier this week, Hyundai Marine & Fire Insurance (HMFI) announced it will acquire a 25% stake in VietinBank Insurance (VBI), with the deal expected to be completed in the first half of 2019.