Swiss Re to acquire 25% stake in Vietnam National Re
Swiss Re announced that it has entered into an agreement to acquire a 25 percent stake in Vietnam's leading reinsurance provider, Vietnam National Reinsurance Corporation (VinaRe), for VND1.3 trillion (approximately US$79 million), making Swiss Re "the company's sole foreign strategic partner."
"The investment is in line with Swiss Re's strategy of continuing to expand its reinsurance business in Asia," said the announcement.
VinaRe provides a range of reinsurance products and services to the life and non-life insurance companies operating in Vietnam. The company is headquartered in Hanoi, and employs over 60 people.
Swiss Re also noted that it has "had an established business relationship with VinaRe for over a decade. Under its new strategic partnership with VinaRe, Swiss Re will offer the Vietnamese company technical assistance across all its businesses, with a focus on further enhancing its reinsurance capabilities. The transaction is subject to regulatory approval."
Martyn Parker, Member of Swiss Re's Executive Board and CEO for Asia, indicated that the "investment and strategic partnership with VinaRe reflects Swiss Re's growing commitment to Vietnam, one of the fastest growing economies in Asia, and is in line with our strategy of expanding our reinsurance business in Asia. We strongly believe that the combination of VinaRe's strong local brand name, relationships and management, coupled with Swiss Re's global expertise will help create a truly market-leading financial services company in Vietnam.''
Trinh Quang Tuyen, Chairman and CEO of VinaRe added: "This marks the beginning of a new era for VinaRe. Together with Swiss Re, we plan to enhance our product and service scope, further strengthen our technical capabilities and explore ways to become a competitive international reinsurance company. The insurance industry in Vietnam is clearly still in its early stages of development. Swiss Re and VinaRe will work together to enhance the growth and further development of the insurance industry in Vietnam."
SwissRe.com - January 9, 2007.