Talanx AG Raises Holdings at PVI

HDI-Gerling Industrie Versicherung AG, wholly owned by Talanx Insurance Group, recently signed a contract with PVI to raise its holdings at the latter to 31.82 percent from 25 percent. The rise in holdings is part of strategic cooperation framework reached by the two sides in August 2011.

 

In this private placement, the two sides agreed on purchase price equalling PVI’s book value of VND26,335 as of December 31, 2011, about 1.55 times higher than PVI’s market value. PVI will use the funds valued VND560 billion (US$27 million) to capitalise a new life insurance subsidiary and to strengthen the capital base of other units like PVI Reinsurance and PVI Holdings.

 

PVI is a leading non-life and industrial insurer in Vietnam, with its units operating in different insurance segments like non-life insurance, reinsurance, life insurance and other financial services. In 2011, its gross written premium totalled US$202 million, up 25 percent from 2010 and 16 percent higher full-year plan. PVI now keeps 23.8 percent of market share. The corporation is a leading non-life insurer in Vietnam.