DB Insurance expands Vietnam presence with BSH buy

Home > Business > Industry

DB Insurance expands Vietnam presence with BSH buy

Published: 16 Jun. 2023, 19:01

DB Insurance headquarters in southern Seoul [DB INSURANCE]

DB Insurance signed an agreement to acquire Saigon-Hanoi Insurance (BSH), the Seoul-based company announced Friday. BSH ranks 9th in the Vietnamese insurance market.

The acquisition of the Hanoi-based company is the third of its kind for DB. Founded in 2008, BSH currently holds a 4.5 percent stake in the Vietnamese market.

DB Insurance ranks as one of Korea’s five largest insurance companies, a list that includes Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, Meritz and KB Insurance.

DB will acquire 75 percent of BSH under the latest contract. The insurer acquired 37.23 percent of PTI in 2015, then ranked fifth in market share, and increased its presence in the Vietnamese market to its current no. 3 position. DB in February also acquired 75 percent of VNI, then ranked tenth in market share.

“DB will set up a stable management system[at BSH] and sharpen its edge based on the takeaways from acquiring PTI,” a company spokesperson said.

DB Insurance is tapping the overseas insurance market to as growth opportunities in Korea dry up, accentuated by a declining population and fierce competition.

It reportedly chose Vietnam, with a population of 99 million, as an outpost for its insurance business in Southeast Asia, noting its economic growth potential, young demographic structure, market openness and geographic significance.

Hanoi’s insurance market has grown by around 11 percent in the past decade, according to DB.

BY SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]