PVI Holdings, Vietnam’s largest insurer in in the energy segment, has signed an international cooperation agreement with Lotte Insurance in Seoul, Korea, to jointly distribute both companies’ services in the global market.
“Our strategic goal is to expand globally, especially in Vietnam, where many Korean businesses have been present. So we hope this partnership will help PVI provide services for Lotte subsidiaries not only in Vietnam but also in other countries,” stated Kim Hyun Soo, Lotte Insurance chief executive.
Lotte Group, one of Korea’s five biggest conglomerates (Korean call them the “chaebol”), has footholds in areas of food, retail, real estate, distribution, tourism, petrochemicals, information technology and finance. The giant aims to become Asia’ leading syndicate by 2020.
Meanwhile, Lotte Insurance, whose credit rating has been raised to A+ by the Korea Investor Service, has been operating for nearly 70 years, and is the parent chaebol’s insurer for all of its units around the globe, including the UK, Russia, Belgium, Japan, China, India and Vietnam, among others.
The Vietnamese partner has also been upgraded to B++ by the US-based rating agency AM Best.
A financial arm of Vietnam’s energy giant PetroVietnam and one of 50 best-listed companies in Vietnam, last year, PVI targets to be the local leading insurance and financial institution within the next 10 years.
PVI expects the partnership to prosper, as the two companies are significantly supported by their parent groups. “PVI will ensure the success of Lotte Group’s operations in Vietnam and is willing to collaborate with Lotte Insurance in executing other projects locally and internationally,” Bui Van Thuan, PVI chief executive, affirmed during the signing ceremony.
The Lotte Hanoi Centre, the local second tallest building, is currently insured by PVI.
“This comprehensive agreement represents a remarkable milestone for the development of both firms, and will open up further partnership opportunities, as Vietnam and Korea have signed a bilateral trade agreement,” the Vietnamese insurer said in a statement following the ceremony.