ERGO Insurance becomes GIC’s strategic partner

GIC today signed a strategic investment agreement with ERGO Insurance Group with the latter’s acquisition of 10 million shares or a 25 per cent of GIC’s stake.

In total, the proposed transaction would be valued at approximately VND380 billion ($18.3 million), not including knowhow transfer and technical support.

This strategic partnership is expected to strengthen GIC’s position in the Vietnamese nonlife insurance market as ERGO would provide GIC with technical assistance and expertise across its businesses, with a focus on enhancing retail products such as motor vehicle, fire and transport insurance.

The strategic partnership also marks ERGO’s active presence in Southeast Asia and the growth prospects in Vietnam’s insurance market.

Global Insurance Company was founded in 2006 as a nonlife insurer specialised in the property and engineering, marine and cargo and motor vehicles, and personal products. In 2010, GIC generated premiums of approximately VND420 billion ($20.2 million).

GIC operates in over 50 provinces and has a network of roughly 7,500 agents in Vietnam. In addition to ERGO, Electricity of Vietnam (EVN) is a major strategic shareholder of GIC.

ERGO Insurance Group is one of the major insurance groups in Europe. Worldwide, ERGO is represented over 30 countries and concentrates on Europe and Asia.

ERGO offers a wide spectrum of different types of insurance and other services with over 50,000 fulltime employees, 40 million customers and premium income accounting to 19 billion euro. ERGO is part of Munich Re Group, one of the world’s leading reinsurers and risk carriers. – VIR

Tags: ERGO Insurance