Insurance Australia Group Limited (IAG) has entered into a conditional agreement to acquire 30 percent of Vietnam-based AAA Assurance Corporation (AAA).
The CEO of AAA, Do Thi Kim Lien, said: "With a population of 90 million and low level of insurance penetration, Vietnam is market with big potential that will continue growing in the coming years."
IAG Managing Director and Chief Executive Officer, Mike Wilkins, said the investment, valued at approximately US$16 million, marked another step in IAG's strategy to boost its Asian footprint.
"Our goal is for our business in Asia to represent 10 percent of IAG's Gross Written Premium on a proportional basis by 2016," he said.
AAA is predominantly a motor insurer, selling directly to customers through a network of regional and city-based branches. Since its establishment in 2005, AAA has grown to become the sixth largest motor insurer in Vietnam.
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