DB Insurance acquires Vietnam's 9th largest insurance company

DB Insurance Co., a South Korean non-life insurance company, announced on Friday that it has signed an acquisition agreement with the Saigon-Hanoi Insurance Corporation (BSH), which holds the 9th largest market share in the Vietnamese property and casualty (P&C) insurance market.

BSH, which is based in Hanoi, was established in 2008. As of 2022, it held a market share of 4.5%, ranking 9th among 32 P&C insurance companies.

In 2015, DB Insurance acquired a 37.32% stake in the Post and Telecommunication Joint Stock Insurance Corporation (PTI), which ranked fifth in market share in the P&C insurance market, growing it to the current third place in terms of market share.

Also, to beef up its business foundation in Vietnam, it signed a deal in February this year to acquire a 75% stake in Vietnam National Aviation Insurance (VNI), which ranks 10th in market share.

Through the latest contract with BSH, the Korean company has been able to expand its business capabilities through three P&C insurance companies in Vietnam.

DB Insurance continues to explore global growth strategies to overcome the limits of domestic insurance market growth due to population decline and market saturation. In particular, considering Vietnam's high economic growth potential, young demography, external openness and access to neighboring countries in Southeast Asia, the company determined that Vietnam is a priority market in the region and decided to further strengthen its business foundation in the country's insurance market.

"We will complete the acquisition process, including domestic and international approvals, as soon as possible, and we will actively pursue establishing a stable management structure and enhancing business competitiveness based on the experience of growing PTI," said a DB Insurance official.

Write to Hanjong Choi at onebell@hankyung.com