GIC, ERGO Insurance Sign Strategic Investment Deal

On February 28th, in Hanoi, Global Insurance Company (GIC) announced the execution of a strategic investment agreement with ERGO Insurance Group (ERGO) acquiring 10 million GIC shares, representing a 25 percent stake in GIC. In total, the proposed transaction would be valued at approximately VND380 billion, not including know-how transfer and technical support.

 

This strategic partnership is expected to strengthen GIC’s position in the Vietnamese non-life 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 South East Asia and the growth prospects in Vietnam’s insurance market.

 

Global Insurance Companywas founded in 2006 as a non-life insurer specialized in the property & engineering, marine & cargo and motor vehicles, and personal products. In 2010, GIC generated premiums of approximately VND420 billion. GIC operates in over 50 provinces and has a network of roughly 7,500 agents in Vietnam.

 

ERGO Insurance Groupis 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 full-time employees, 40 million customers and premium income accounting to EUR19 billion.