PROJECT

Projects

Summary of Proposed Investment

Project Number

11432

Company Name

ALLIANZ GENERAL INSURANCE (VIETNAM) CO LTD

Date SPI Disclosed

Feb 22, 2002

Country

Viet Nam

Industry

Financial Markets

Projected Board Date

Mar 7, 2002

Status

Completed

Sector

General Insurance (Non-Life)

Department

Regional Industry - FIG Asia & Pac

Environmental Category

C - No Impact

Previous Events

Approved : May 22, 2002
Signed : Aug 6, 2002
Invested : Oct 22, 2002

Project Description


The company is a fully owned subsidiary of Allianz AG and its affiliate AGF S.A. In November 1999, the company obtained the license to sell non-life insurance policies to foreign-funded companies in Vietnam. Presently, the company has obtained government approval to expand its business to domestic companies. This project will help the only existing non-state owned, non-life insurance company in Vietnam to grow and emerge as a significant player.

Development Impact

Development impact will be measured by the following factors:
  • growth rates (of premium, assets, profits and other financial indicators) relative to large state-owned insurance companies;
  • profitability compared with industry average and industry leaders;
  • share of premium to non-state companies in total premium relative to industry averages and market leaders; and
  • impact on markets, i.e. increasing market share; mergers with or acquisitions of other small state-dominated insurance companies; pressure on other insurance companies to attract outside investors and adopt similar business practices.
    IFC’s Role
    • Although there are a number of foreign insurers that have invested in insurance companies in Vietnam, the company is the only non-life insurance company without state-ownership, as compared to others which have state ownership of at least 50%. IFC will give critical support to the company to grow into a significant player in the local market;
    • IFC’s participation will enhance the credentials of the company by adding diversity to its business expertise through the infusion of an independent investor to its shareholding; and
    • IFC’s participation adds to the company’s effort in setting benchmarks for the industry for corporate governance, transparency, and business and accounting practices.

    Sponsor / Cost / Location

    Development Impact