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

Mekong summit calls for greater riparian co-operation Mekong summit calls for greater riparian co-operation

Mekong River riparian countries have improved co-operation since the first Mekong River Commission (MRC) summit held in Thailand four years ago, a senior Vietnamese official has said.

Viet Nam attempts to hold back deadly measles strain Viet Nam attempts to hold back deadly measles strain

The head of Viet Nam's General Department of Preventive Medicine, Tran Dac Phu, announced on Tuesday that the department would work to contain the outbreak of measles over the coming months.

Da Nang plans a greener future Da Nang plans a greener future

The central city of Da Nang will have a face-lift as it becomes a green city following the Prime Minister's decision on the city's adjusted master urban plan for 2030 and 2050.

Delta households face water shortage Delta households face water shortage

More than 377,000 people in the Cuu Long (Mekong) Delta face a fresh water shortage because of saline water intrusion in the area, according to the National Centre for Rural Clean Water Supply and Environmental Sanitation.

Ha Noi to host National Shooting Cup 1    Ha Noi to host National Shooting Cup

The National Shooting Cup is scheduled to take place in the Ha Noi-based National Sports Training Centre from April 16 to 24.