Dai-ichi has become the first Japanese insurance company to set foot in
The value of the acquisition has yet to be unveiled.
Bao Minh CMG, a 50:50 joint venture between
Tran The Huy, general director of
In the second year, the firm would enlarge market share in
The insurer said it targeted to increase its chartered capital to US$25 million from the current $12.2 million in the near future.
He also pledged that despite the name and ownership change, all rights and obligations of customers under all existing insurance contracts would stay the same until expiration.
According to Shigeo Tsuyuki, deputy managing director of Japan-based Dai-ichi Life, the local insurance market carries large potential promoted by the young population, high economic growth, and low rate of life-insurance owners.
Bao Minh CMG, the fifth largest life insurance company in terms of gross premium income in
It had 100,000 insurance policy holders by late last year and achieved gross premium income of VND126 billion (US$7.8 million), up 12.5 percent over the previous year.
Prior to granting approval in principle to the acquisition, the ministry analyzed the financial strength, experience and reputation of Dai-ichi Life, to ensure that customer benefits were properly secured.
Founded in 1902, Dai-ichi Life is the second largest life insurance company in
Ranking sixth among the world largest life insurers in terms of gross premium income, Dai-ichi Life posted $29 billion in the fiscal year ended March last year, managing total assets of more than $ 276 billion.