Last updated: 16:31 - January 13, 2007
Japanese insurer to buy Bao Minh http://www.nhandan.com.vn/english/business/130107/business_japanese.htm
The Dai-ichi Mutual Life Insurance Company (Dai-ichi Life) plans to purchase Bao Minh CMG Life Insurance Company (Bao Minh CMG), a move which has been approved in principle by the Finance Ministry.
This is the first Japanese life insurance company to begin operation in Vietnam and is the first full-scale mergers and acquisition (M&A) transaction in the Vietnam financial sector.
Bao Minh CMG, the fifth largest life insurance company in terms of gross premium income in Vietnam, was established in 1999 by a 50/50 joint venture of the major Australian life insurance company, Colonial Mutual Life Assurance Society Limited and the joint-stock Bao Minh Insurance Corporation.
Bao Minh CMG will be changed into the Dai-ichi Life Insurance Company of Vietnam (Dai-ichi Life Vietnam) after the acquisition.
Despite the change of the name and the ownership of the company, all the rights and obligations of customers under all existing insurance contracts remain unchanged until the expiration of the contracts, according to press release issued by Bao Minh CMG and Dai-ichi Life.
Prior to granting approval in principle to this acquisition, the Ministry of Finance studied carefully the financial strength, experiences as well as the reputation of Dai-ichi Life, one of the leading companies in the world's second largest life insurance market, to make sure that the benefits of the customers were property secured.
Dai-ichi Life is the second largest life insurance company in Japan, the world's second largest life insurance market. Dai-ichi Life ranks sixth among the world largest life insurers in terms of gross premium income (US $29 billion in the fiscal year ended March 31 2006).
In Japan, Dai-ichi Life provides a wide range of financial services including life insurance, pension and asset management with powerful nationwide distribution network of more than 40,000 fulltime sales agents. As of March 2006, Dai-ichi Life manages total assets of more than US $276 billion. (VNS)
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