South Korea’s Mirae Asset Life Insurance Co. is taking its first step into offshore market by joining hands with Prevoir Vietnam Life Insurance, the 10th largest life insurer in the fast-growing Southeast Asian country.

According to insurance industry sources on Friday, Mirae Asset Life Insurance inked an agreement with Prevoir Vietnam Life Insurance to acquire 50 percent stake in the Vietnamese life insurer. The Korean company will purchase new shares issued by the Vietnamese firm and form a 50:50 partnership with Groupe Prévoir, French insurance company that currently owns the largest share in Prevoir Vietnam Life Insurance. The equity for purchase reportedly is worth 60 billion won ($52.6 million).

Mirae Asset Life Insurance reportedly secured the stake in Prevoir Vietnam Life Insurance after elbowing out another Chinese bidder, said an unnamed finance industry official.

The Korean life insurer expects to complete the equity acquisition process by the end of this year after making necessary steps with both Korean and Vietnamese financial regulators. Any company seeking capital investment in Vietnam must gain approval from the Vietnamese finance ministry.

According to Vietnamese insurance association, Vietnam’s insurance market had expanded at an average annual growth rate of around 20.7 percent from 2010 to 2015. Market experts say it still has huge room for growth as the combined revenue of the insurance firms in Vietnam reached only 2.5 trillion won last year.

Established in 2005, Mirae Asset Life Insurance stepped up to be Korea’s fifth largest life insurance company based on asset size after acquiring PCA Life Insurance Co., a subsidiary of U.K.-based Prudential Plc in November last year.

By Park Joon-hyung

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]