09 Nov 2015
Purchase for stake of BIDV Insurance Corporation
Brian Ng and Mildred Kwok from the General Corporate Commercial Group, as well as Thuy Huynh, Samuel Pierce and Duy Cao from Rajah & Tann LCT Lawyers are acting for Canada-headquartered Fairfax Financial Holdings, through its subsidiary Fairfax Asia Limited over a purchase for 35 per cent stake of BIDV Insurance Corporation (BIC).
The holding is equivalent to more than 41 million shares of the Vietnamese insurer.
After the transaction, Fairfax will become BIC’s strategic partner, who will provide technical assistance in the areas of underwriting management, risk management, information technology, development of distribution network and investment management.
The Bank for Investment and Development of Vietnam (BIDV), the parent bank of BIC, is Vietnam’s third largest lender by total assets. The bank’s insurance arm is one of the local leading non-life insurers with 25 member companies and an exclusive distribution right for several insurance services through BIDV.
The listed insurance firm, which has been rated a credit of B+ by the US insurance industry focused rating agency A.M. Best, is currently holding 65 per cent in Lao Viet Insurance Company and 51 per cent in Cambodia Vietnam Insurance Plc. In March, BIC strengthened the presence in Southeast Asia by receiving the registration license to establish a representative office in Myanmar.
Meanwhile, Fairfax Financial Holdings focuses on non-life insurance, reinsurance and investment management segments. The group achieved a US$1.67 billion profit after tax last year, its total assets stood at US$36.13 billion. In Asia, where the Canadian firm’s premium revenue alone hit over US$3 billion, Fairfax has footholds in India, Indonesia, China, Malaysia, Singapore, Hong Kong, Thailand and Sri Lanka and Vietnam.