Bao Minh Insurance Corporation and Commonwealth Bank of Australia announce divestment of their Vietnam life insurance business
12 January 2007
The Bao Minh Insurance Corporation - a subsidiary of the newly established State Capital Investment Corporation and the Commonwealth Bank of Australia announce they are selling their jointly owned Bao Minh CMG Life Insurance Company to The Dai-ichi Mutual Life Insurance Company of Japan.
Bao Minh CMG Life Insurance Company has enjoyed strong growth since its establishment in 1999. It is the only joint venture life insurance company in Vietnam and is the 5th largest life insurance company in terms of premium income, with over 50 offices country wide.
The commercial terms of the sale are confidential.
Dai-ichi Life has a strong Japanese quality insurance brand and the purchase matches with the company’s strategy of expanding its market presence in Asia. The sale is subject to regulatory approval and the parties will work together to deliver a smooth transition of the business in the first half of 2007.
Customer benefits provided under the policies issued by Bao Minh CMG will remain unchanged as they will automatically be taken over by Dai-ichi Life following completion of the sale.
The Commonwealth Bank has submitted a banking licence application in Vietnam and is currently awaiting regulatory approval.
About the Commonwealth Bank
The Commonwealth Bank of Australia, which, with total assets of A$330 billion as at 31 December 2005 and operations in 13 markets worldwide, is one of the two largest Australian banks by market capitalisation. The Bank enjoys AA- and AA ratings from international ratings agencies Standard & Poor’s and Fitch, respectively.
With more than 10 million clients worldwide, the Bank provides integrated financial services, including retail, business and institutional banking, funds management, pension, general and life insurance.
About Bao Minh Insurance Corporation
Bao Minh Insurance Corporation is the second largest general insurer in Vietnam with a market share of 21.76% as at the end of 2005. The Corporation has a network of 58 member companies, covering 55 provinces and cities throughout the country.
Converted from a 100% State-owned company into a joint-stock corporation in August 2004 with the Government holding a dominant stake of 63%, the Corporation has listed its shares of stock in the Hanoi Securities Trading Center since November 2006. The major lines of business the Corporation is currently writing include automobile, aviation, marine cargo, hull and P&I, property and engineering, and person related insurances.
About Dai-ichi Life
Established in 1902, Dai-ichi Life is the 2nd largest life insurance company in Japan, the world’s second largest life insurance market.
Dai-ichi Life provides a wide range of financial services including life insurance, pension and asset management with powerful nationwide distribution network of more than 40,000 fulltime sales agents. As of March 2006, Dai-ichi Life manages a total asset of more than US$ 276 billion.
Dai-ichi Life ranks 6th among the world largest life insurers in terms of gross premium income of US$29 billion.
Media and Issues Management
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Bao Minh Insurance Corporation
Mr. Nguyen The Nang
Executive Vice President
Phone: +84 8 8294180
Mobile: +84 904237971