Bamboo Capital acquires 80.64% of AAA Insurance

On December 2, the Bamboo Capital Group (HoSE: BCG) and its subsidiary the BCG Financial Joint Stock Company received Ministry of Finance (MoF) approval for the acquisition of 80.64 per cent of shares in the AAA Insurance Joint Stock Company. The documentation for the deal has been submitted to and approved by the MoF.

The total number of AAA Insurance shares currently stands at 112,261,006, of which BCG now owns 79,705,315 and BCG Financial 10,822,468, or 71 per cent and 9.64 per cent. With a total ownership of 80.64 per cent, the Bamboo Capital Group has replaced the Insurance Australia Group (IAG) as the largest shareholder in AAA Insurance.

“This deal marks the official entry of BCG into Vietnam’s insurance market,” said Mr. Pham Minh Tuan, Vice Chairman of the Bamboo Capital Group. “It is our long-term vision to build up a solid base for the financial sector to develop four strategic spearheads, which are insurance, banking, fintech, and securities services. We also intend to continue improving the service quality of AAA Insurance and expand to the life insurance segment in the near future.”

Since September, BCG has expanded its activities into the financial services sector by establishing the BCG Financial JSC. BCG Financial is the fifth strategic business segment of the Bamboo Capital Group, joining manufacturing, construction, real estate, and renewable energy. Its long-term strategy is to build an ecosystem that works sustainably and robustly. In the time to come, it plans to affirm its position in the fields of banking, securities services, and fintech.

Established in 2005, AAA Insurance is a pioneering non-life insurance company in Vietnam. In 2013, it became a subsidiary of IAG. In its 16 years of establishment, AAA Insurance opened 51 branches and 100 transaction offices nationwide. Today, it has been restructured and operates under a much more efficient footprint of 17 branches and transaction offices. It specializes in providing products for individual and corporate customers, such as Construction Insurance, Fire and Explosion Insurance, Motor Vehicle Insurance, Personal Accident Insurance, Travel Insurance, and so on.

“During the comprehensive due diligence process, we realized there was significant opportunity to improve on the prospects of AAA Insurance to reflect its potential, strength, and growth prospects,” said Mr. Tuan. “The company has a strong financial background, managed under the strict financial regulations and corporate governance of IAG. AAA’s products and services are greatly appreciated by customers in the market. Although the company’s financial statements show accumulated losses of nearly VND800 billion (about $35,000), these are losses related to long-term investment assets unrelated to the insurance business. During their term, IAG’s management decided to liquidate these non-core assets so that AAA Insurance can focus on the insurance business. The share acquisition value from this transaction is calculated with prudence and care based on a market approach.”

The advantages and the platform that AAA Insurance possesses are favorable for BCG to inherit to further improve the quality of non-life insurance products and develop more life insurance products, besides introducing new offerings to meet the requirements of the ever-changing market in the future. This also demonstrates BCG’s potential from business expansion and achieving the long-term goal of building a multi-industry ecosystem in the future.

 About BCG Financial JSC

The BCG Financial Joint Stock Company provides financial services and has charter capital of VND400 billion, 80 per cent of which is held by BCG. It is the fifth strategic business segment of BCG, together with manufacturing, construction, real estate, and renewable energy. In the time to come, BCG Financial plans to affirm its position in the fields of banking, securities services, and fintech.