M&A Growth in Vietnamese Non-Life Insurance Sector
Mergers and acquisitions in Vietnam’s non-life insurance sector are on the rise, drawing interest from both foreign and domestic investors. Despite a quiet period in the life insurance sector, the non-life insurance market is proving to be attractive due to its size, potential for growth, and a steady increase in revenue.
As of 2023, Vietnam had 82 insurance companies, with 32 focused on non-life insurance. The total premium revenue for non-life insurance reached over VNĐ58.44 trillion, showing a significant increase compared to the previous year. Foreign investment has played a crucial role in enhancing the capabilities of domestic non-life insurance companies. PetroVietnam Insurance Corporation (PVI) and BIDV Insurance Corporation (BIC) have both experienced positive developments after securing foreign investments.
The presence of Korean investors in the Vietnamese non-life insurance market is notable, with many top companies having capital contributions from Korean counterparts. The growth opportunities in Vietnam, coupled with the saturation of the Korean insurance market, have motivated Korean companies to expand their operations into the country.
On the domestic front, Vietnamese groups are also engaging in M&A activities to strengthen their insurance ecosystems. Tasco’s acquisition of Groupama Assuances Mutuelles and the establishment of Techcom Non-Life Insurance Company by Techcombank are examples of this trend.
Despite the robust performance of the non-life insurance sector, the life insurance market in Vietnam has not seen significant deals recently. With only two joint venture companies operating in the market, investors are now leaning towards full ownership of Vietnamese insurance companies due to the limited success of joint ventures in the country.
Overall, the non-life insurance sector in Vietnam is experiencing a surge in M&A activities, attracting interest from both foreign and domestic investors. The market’s potential for growth and profitability makes it an appealing investment destination for financial corporations looking to expand their presence in Southeast Asia.
