[Alpha Biz=(Chicago) Reporter Paul Lee] Dongbu Insurance announced on the 24th that it has signed a contract to acquire a 75% stake in VNI (Vietnam National Aviation Insurance), the 10th largest in the Vietnamese non-life insurance market, in Hanoi, Vietnam, on the 22nd.
Dongbu Insurance explained that VNI was established in 2008 and is a non-life insurance company that has grown to 54.7 billion won in equity capital, 181.1 billion won in total assets and 113.3 billion won in annual sales. As of 2021, the market share (M/S) was 3.7%, ranking 10th out of 32 property insurance companies, and the auto insurance share was 3rd (No. 1 in auto insurance). It is explained that it is a company with great growth potential in the future as it has 45 branches nationwide with sales and compensation infrastructure.
Dongbu Insurance acquired a 37.32% stake in Post & Telecommunication Insurance (PTI) in Vietnam, the fifth-largest market share (currently third) in 2015. With the acquisition of VNI, the company will take control of two property insurance companies in Vietnam in eight years.
Vietnam's non-life insurance market, which has a population of 98.85 million, has an annual insurance premium of 3.2 trillion won. Although it is only one-thirty of the domestic market (107.7 trillion won in original insurance premiums in 2021), it has been growing at an average annual rate of about 11% over the past decade.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
