Hyundai’s non-life insurance arm to acquire 25% of Vietinbank Insurance

South Korean insurer Hyundai Marine & Fire Insurance has agreed to acquire a 25 per cent stake in Vietinbank Insurance to pave the way for its expansion in Vietnam.

Financial details of the acquisition will be announced upon closing of the transaction, the South Korean non-life insurer said in a regulatory filing. Once the transaction is completed, Hyundai Marine & Fire will become Vietinbank Insurance’s second-largest shareholder after its parent bank which currently holds a 97.83 per cent stake.

Hyundai Marine & Fire will also appoint four executives to Vietinbank Insurance’s board.

The acquisition will help Hyundai Marine & Fire establish a stronger base in the Vietnam insurance market, which it said demonstrates “high growth potential”, and provide services to Korean companies operating in Vietnam. It entered Vietnam in 1997.

Founded in 2008 by Vietinbankthe second-largest state-owned bank, the Vietnamese insurance firm was ranked among the 10 most accredited insurers in 2017. It reported a revenue of nearly VND1.3 trillion in the first 10 months of 2018.

Vietinbank Insurance had earlier formed a life insurance joint venture with Aviva Group. The British insurer acquired the entire shares of the JV in 2017.

Vietnam’s insurance market reached VND58.65 trillion ($2.6 billion) in revenues in the first half of 2018, up 24.35 per cent year-on-year, according to Vietnam’s Insurance Supervisory Authority.

Vietnam has become a hotbed for investments by foreign companies, especially Korean investors. Pulse News reported last week that Vietnam accounted for 17.7 per cent of total direct overseas investment by Korean firms in 2017, surging from an average of 3.7 per cent in the 1990s.

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Japan’s MUFG not seeking to raise VietinBank stake to 50%: Report

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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