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QBE Acquires Vietnam Insurer From Allianz
(BestWire Services Via Thomson Dialog NewsEdge)
Australia's QBE Insurance Group Ltd. continued its expansion in Asia-Pacific markets with the acquisition of a property/casualty company in Vietnam.
QBE (ASX:QBE) said it bought Allianz General Insurance (Vietnam) Co. Ltd. from German insurer Allianz A.G. and the International Finance Corp., a World Bank division that facilitates private investment in developing economies. Terms of the transaction weren't disclosed.
The sale was approved by Vietnam's Ministry of Finance, QBE said. The acquired company was renamed QBE Insurance (Vietnam) Co. Ltd.
"This acquisition reinforces QBE's commitment to maintain a successful and profitable insurance company in Vietnam," Vince McLenaghan, chief executive officer of QBE's division for Australia, Asia, Pacific and Central Europe, said in a statement. He added that QBE Vietnam's portfolio would allow QBE to expand its activities and products in Vietnam.
McLenaghan said QBE Vietnam would continue to serve Allianz customers and continue its association with insurance brokers and agents. The company also will work with local insurers to provide reinsurance support and technical knowledge. It also will offer products and claims services to foreign business groups and embassies working in Vietnam.
Last month, the Vietnamese government approved the first general insurance license granted to a U.S.-based insurance organization to American International Group Inc., allowing American International Underwriters Overseas Ltd.to operate the wholly owned general insurance company AIG Vietnam General Insurance Co. Ltd. (BestWire, Dec. 23, 2005). The company, which will be based in Hanoi, will market property/casualty insurance products to both individuals and businesses, beginning operations at the start of this year, AIG said.
Among QBE's acquisitions in the region in 2004 was that of Zurich Financial Services Group's Singapore unit, Zurich Insurance (Singapore) Pte. Ltd. QBE also acquired the Australian nonlife operations of Dutch insurer ING Group (BestWire, May 14, 2004).
Allianz Asia CEO Bruce Bowers said the Vietnamese market has potential to grow, but Allianz is focusing on markets in Asia it sees as having greater strategic priority. In 2004, Allianz unveiled a multiple-market effort to expand in China, rolling out life and health insurance branches and developing asset management partnerships while planning future general insurance operations (BestWire, March 31, 2004).
In 2002, the International Finance Corp. went into partnership with Allianz by taking a 15% stake in Allianz Vietnam. Allianz had acquired the insurer from Assurances Generales de France by becoming a majority stakeholder in 1999.
Allianz A.G. currently has a Best's Financial Strength Rating of A+ (Superior). QBE Insurance (International) Ltd. is rated A (Excellent).
(By David Pilla, senior associate editor, BestWeek: David.Pilla@ambest.com)
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