Fairfax invests in Vietnamese insurer
Financial services company Fairfax Financial has invested in BIDV Insurance Corporation, a Vietnamese non-life insurer.
Fairfax will acquire 35 percent of the outstanding shares of BIDV by subscribing for newly issued shares.
BIDV has an exclusive bancassurance arrangement with its largest shareholder, the Bank for Investment and Development, one of the largest banks in Vietnam with approximately 1000 offices and a Vietnamese customer base of approximately 7 million clients.
The insurer generated consolidated gross written premiums of approximately $60 million in 2014.
The transaction is subject to regulatory approval in Vietnam and is expected to close in the third quarter of 2015. On closing, Fairfax's investment in BIC will become part of Fairfax Asia under the leadership of Ramaswamy Athappan.
"We are looking forward to strategically investing in BIC and working with Pham Quang Tung, the chairman of BIDV, utilising the best practices of Fairfax so that BIC will become the leading non-life insurer in Vietnam" said Prem Watsa, chairman and chief executive officer of Fairfax.
"BIDV has a very strong presence in Vietnam, as well as Cambodia and Laos, and this is a great opportunity for us to expand in the region with a partner with a strong history of growth and focus on profitability,” he added.
