Local insurers not worried about Prudential-AIA deal

Local insurers in Vietnam said they see no big problem with Prudential’s acquisition of American International Assurance.

Phung Dac Loc, Secretary General of the Association of Vietnam Insurers, said while Vietnamese regulators were examining the case, the insurers themselves recognized it as a deal difficult to oppose.

“They [Prudential and AIA] are already in Vietnam with separate brands with their own share and they will be as they are now after the merger,” said Loc.

Loc said it was easier for the insurers to accept the deal than the licensing of newcomers as he felt shares have already been marked out in the local market, with more room because the industry was nascent as yet.

Vietnamese laws allow mergers undertaken by businesses that hold, combined, a maximum of 30 to 50 percent of the market share in certain sectors and fields.

Prudential was Vietnam’s No.1 insurer and a merger with American International Group’s unit would take its 39 percent market share to 45 percent, according to an official from Prudential. However, another source said the share may overshoot the margin.

THANHNIEN

Tags: Vietnam insurance industry, Vietnam insurance market