Updated  
April, 20 2012 10:25:28

Aussie insurer to buy stake in local firm

HCM CITY — The Insurance Australia Group (IAG) has entered into a provisional agreement to acquire a strategic stake of 30 per cent in the AAA Assurance Corporation.

The IAG managing director and CEO, Mike Wilkins, said in a press release that the deal would cost approximately US$16 million.

"This investment will allow us to enter Viet Nam's general insurance market, which has been growing at a compound rate of 25 per cent per annum since 2009.

"With a low level of insurance penetration, the market is expected to continue growing at similar levels for another three to five years," he said.

AAA is predominantly a motor insurer, selling directly to customers through a network of regional and city-based branches. Since its establishment in 2005, AAA has grown to become the sixth largest motor insurer in Viet Nam.

IAG is expected to support AAA with expertise in the areas of underwriting, pricing and actuarial, as well as risk and claims management.

Under the joint venture arrangement, IAG will have board representation, the right to appoint certain key management personnel and affirmative voting rights over key business matters.

The investment is subject to regulatory approval and is expected to be completed by June 2012. — VNS

Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

Highlight

Commando recalls sinking of US aircraft carrier Commando recalls sinking of US aircraft carrier

Seventy-nine-year-old former Vietnamese commando Lam Son Nao still feels uncomfortable whenever he thinks about the moment he tried to recover 84 kilos of explosives that had been left near the USNS Core aircraft carrier.

When festivals lose sight of the people 1    When festivals lose sight of the people

Last year I visited George Town in Penang, Malaysia. I was excited to find a lot of similarities between it and my hometown, Hue.

Cultural events lead to fireworks competition 1    Cultural events lead to fireworks competition

An International cuisine event will be held in the central city as a lead up to this weekend's scheduled seventh Da Nang International Fireworks Competition, a contest between teams representing five countries.

Da Nang to monitor trees with GIS 1    Da Nang to monitor trees with GIS

Da Nang plans to use the geographic information system (GIS) in the city's public tree management work, the municipal People's Committee spokesman Vo Van Thuong said.

Man detained for trafficking 15 monkeys Man detained for trafficking 15 monkeys

The Nghe An Province's environmental crimes division said this morning that it has detained a man for allegedly trafficking monkeys following a tip-off.