PVI Holdings and Talanx enter into a strategic partnership for Vietnam
Hanoi / Hannover, 17. August 2011
PVI Holdings (formerly Petrovietnam Insurance Joint Stock Corporation – PVI) and Talanx Group have entered into a strategic partnership for the Vietnamese insurance market. Within the strategic alliance the Talanx Group will work closely with PVI Holdings and its subsidiaries to support PVI’s business development.
Under the agreement the Talanx subsidiary HDI-Gerling Industrie Versicherung AG is to acquire a 25% stake of the enlarged share capital of PVI Holdings and will become the foreign strategic insurance partner of PVI Holdings. The two companies will join forces in their respective insurance business, supported by the Talanx subsidiary Hannover Re.
The parties have agreed on a purchase price of VND 36,000 per share and a total amount of VND 1,916.5 billion (roughly EUR 65 million or USD 93 million), which will also serve to further enhance the financial strength of PVI Holdings and promote the continuous development of PVI Holdings and its subsidiaries. The transaction, which is still subject to local regulatory approval, is expected to close before year-end 2011.
PVI, the leading non-life and industrial insurer in Vietnam enjoys a current market share of 24 % and is listed on the Hanoi Stock Exchange. Its gross written premium in 2010 totalled USD 183 million. With a staff of 1,370 and 25 branches countrywide, PVI is the only Vietnamese company to hold a license for both industrial insurance and reinsurance. Its A.M. Best rating is B+ (good).
Petrovietnam (PVN), the largest company in Vietnam contributing 25% to the country's gross domestic product, holds the majority of the shares of PVI.
Mr. Nguyen Anh Tuan, Chairman of PVI Holdings, commented: "This agreement marks an important milestone in the development of PVI as it advances to become a leading professional financial insurance institution in Vietnam".
One of the leading German industrial insurers, HDI-Gerling Industrie Versicherung AG is pursuing a policy of globalisation: it has branches and subsidiaries in more than 30 countries and conducts business activities in more than 120 countries through a worldwide network. Employing a workforce of 1,800, the company generated gross written premium of EUR 3.1 billion in 2010.
Dr. Christian Hinsch, Deputy Chairman of Talanx AG's Board of Management and Chief Executive Officer of HDI-Gerling Industrie Versicherung AG, noted: "We are delighted to join forces with PVI as a successful and strong insurer and thereby secure a foothold in the vigorously growing Vietnamese market, which will form part of the ASEAN free trade area from 2015 onwards. Together with PVI we have a platform to conduct further activities in this highly attractive region and are also able to give full service to our clients investing in this region".