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HSBC Insurance to up stakes in Bao Viet
HSBC Insurance, the sole foreign partner of HCM City-listed Bao Viet Holdings, will increase its stake in the insurance giant by an additional 8 per cent this year, according to Bao Viet Holdings.
Both of the insurers on Monday inked a deal to start discussions on the additional-stake acquisition which would be implemented through private offerings. After completion, HSBC would hold an 18 per cent stake in Bao Viet.
In 2007, HSBC Insurance bought 10 per cent holdings in the local insurer at a price of VND70,000 each.
The share buy-up by HSBC was a part of the collaboration deal, said Le Quang Binh, chairman of Bao Viet Holdings in June.
In the future, an insurance brokerage company would be established, said Bao Viet in its press release on Monday.
Binh also said that the ownership cap of HSBC Insurance could reach 25 per cent in the future, depending on how effective the support of HSBC Insurance is in increasing Bao Viet’s business.
In the first eight months of this year, Bao Viet Holdings generated an approximate premium of VND6.6 trillion (US$370.8 million), representing a year-on-year increase of 10.7 per cent. In the same period, the insurer estimated to reach VND828 billion ($46.5 million) in pre-tax profit, 6 per cent more than the year’s target and a 43 per cent increase over the corresponding period last year.
BHV yesterday closed up 0.59 per cent to VND33,900 a piece.
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