Allianz VN Arranges To Shut Down

The Ministry of Finance says Allianz VN – the largest foreign-invested non-life insurance company in Vietnam - is arranging to withdraw from the market. Established in 1999 with an investment capital of US$7.5 million, Allianz-AGF is a joint venture between two international insurance corporations, Allianz and AGF (France). In 2002, AGF pooled all its share of capital to Allianz and the International Finance Corporation (IFC) and became a new partner owning 15 percent of total capital.

 

Why does Allianz want to close down in Vietnam at this time when experts say the market is developing in depth? A reliable source from the company says perhaps leaders of the Germany-based Allianz Corporation want to reorganize operations and focus on more effective markets.

 

A person who is engaged in the transfer of Allianz VN says Allianz wants to leave Vietnam just because their business policy does not permit of any commission payment for insurance buyers. Meanwhile, most domestic insurance-buying companies have asked for such commission and the company has had no choice but to say no to them.

 

According to a reliable source from Allianz Vietnam, BIDV-QBE, a joint venture between the Bank for Investment and Development of Vietnam and the QBE Insurance Corporation, Australia, intends to entirely buy Allianz VN.