Samsung Fire & Marine Insurance, South Korea's biggest top non-life insurance company, has signed an agreement to buy a 20% stake in Vietnam's nonlife insurer PJICO with aims to expand its presence in the Southeast Asian country.
The company will be buying the stake from Petrolimex, Vietnam’s state-run oil firm. The value of the deal was not disclosed.
PJICO is Vietnam’s fifth largest nonlife insurer with a 7% market share.
Petrolimex is among the three biggest shareholders of PJICO; the others are the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and Vietnam National Reinsurance Corporation (VINARE). The three together hold a 66% stake in PJICO.
Samsung Fire already has a Vietnamese insurance subsidiary in Ho Chi Minh City that was established in 2002.
Separately, South Korea's Financial Services Commission said earlier this month that it has approved Mirae Asset Life Insurance's acquisition of PCA Life Insurance, the local unit of Britain's largest insurer Prudential.
The deal is reported to be worth KRW170 billion (US$150 million), reported the Yonhap News Agency.
The takeover will make Mirae Asset Life Insurance the fifth largest life insurer with assets of KRW33.41 trillion in the domestic insurance market.