The Vietnamese insurance market is expected to witness several large brand name changes as the trend among foreign insurance companies to acquire 100% stakes in insurance companies progresses at a steady pace.
Citing an industry expert, The Vietnam Economic Times reported that “Mergers and acquisitions in the insurance industry, life and non-life alike, are not limited to foreign markets and will spread to Vietnam as well.” At the same time, M&A is seen as important steps as insurance companies are seeking different ways to grow.
A common trend among insurers, mainly in the life insurance segment, was to enter the Vietnamese insurance market by forming partnerships with local enterprises, especially banks and conglomerates. On the other hand, Vietnam’s current rising insurance market is also opening new investment paths for foreign financial and insurance corporations.
A new trend has been identified where foreign corporations are making an initial capital contribution and then to buy up all of the local enterprises’ shares after a few years to turn the company into 100% foreign-owned entity. This has been identified recently within the insurance market with cases such as Sun Life Vietnam. Experts forecast that this trend will continue.