Canadian insurance firm gets 35% BIC stake

Friday, Jan 08, 2016 15:03

Transaction is being taken at the BIDV Insurance Corporation (BIC). Fairfax Asia Limited, a subsidiary of Canadian Fairfax Financial Holdings Limited bought 41 million shares of BIC on January 5. – Photo

HA NOI (Biz Hub) — Fairfax Asia Limited, a subsidiary of Canadian insurance and reinsurance firm Fairfax Financial Holdings Limited, bought 41 million shares in the BIDV Insurance Corporation (BIC) on January 5.

With this 35 per cent stake, Fairfax Asia will become a strategic investor of the BIC.

Fairfax Asia and BIDV had signed an agreement to this effect on May 4, 2015.

The finance ministry on August 8, 2015, approved in principle Fairfax Asia's plan to become a strategic shareholder of BIC.

BIC holds a 65 per cent stake in Lao Viet Insurance Company and a 51 per cent stake in Cambodia Vietnam Insurance Plc. It established a representative office in Myanmar in June 2015.

As of the third quarter of 2015, BIC earned VND765.4 billion (US$34 million) in revenue and VND94 billion ($4.17 million) in pre-tax profits.

Fairfax Financial Holdings, established in 1985, has assets worth $42 billion and earned $550.4 million in pre-tax profits in the first nine months of 2015. — VNS

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