15:53 | 27/12/2018 Finance - Banking
Hyundai Marine & Fire Insurance Co Ltd (HMFI), the Republic of Korea’s No 2 non-life insurer, has signed a stock purchase agreement to buy a 25 percent stake in Vietnamese non-life insurer VietinBank Insurance Joint Stock Corp (VBI).
|Photo courtesy of Vietinbank|
The deal is equivalent to 16.6 million shares of VBI, a subsidiary of Vietnam’s leading commercial lender VietinBank. After the sale, VBI will raise its capital to 666.7 billion VND (28.5 million USD).
With this purchase contract, VBI will be supported with capital to enhance its financial capacity and competitiveness, producing impressive results in all of its operational segments.
“HMFI’s purchase of VBI’s shares, becoming its second largest shareholder, has affirmed VBI’s reputation in the field of non-life insurance and the attraction of the company to investors, especially foreign strategic investors operating in the same sector. In the future, VBI commits to continue improving product quality, enhancing customer services and applying modern technology in accordance with the trend of insurance development in Vietnam,” said General Director of VBI Le Tuan Dung at the signing ceremony held recently in Hanoi.
Cheol Young Lee, a representative from HMFI said: “With more than 60 years of experience in the non-life insurance sector and a global network, HMFI wishes to cooperate with VBI and contribute practical and valuable experience to VBI’s development.”
HMFI will focus on supporting VBI in the expansion of its customer network, especially Korean customers in Vietnam, boosting new insurance products suitable for the Vietnamese market, applying new technology in risk management and human resource training, Lee said.
At the signing ceremony, HMFI also signed a strategic partnership agreement with VietinBank.
According to the bank, with the strength as one of the four largest commercial banks in terms of assets and network in Vietnam, VietinBank, VBI’s largest shareholder, commits to providing maximum support to VBI in using existing facilities of VietinBank, developing brand and customer services, as well as the distribution of VBI’s insurance products within Vietinbank’s network of 155 branches and 958 transaction offices across provinces and cities nationwide.