NongHyup Financial Group Inc. plans to enter the Chinese insurance market through an investment in a new joint venture, while also eyeing entry into Southeast Asia via a potential acquisition of stakes in a Vietnamese insurer.
The group said that its affiliate NongHyup Property & Casualty Insurance Co. Ltd. will become a shareholder in a new insurance company to be established by the All-China Federation of Supply and Marketing Cooperatives.
The new insurance company will be set up with 1.5 billion yuan in capital. NongHyup Propoerty & Casualty will hold a stake of less than 20% in the insurer.
Meanwhile, NongHyup Life Insurance Co. Ltd., another group affiliate, plans to become a shareholder if the Chinese marketing cooperative establishes a new life insurer.
The company added that it is in talks with Vietnam Bank for Agriculture & Rural Development, also known as Agribank, regarding opportunities in Vietnam's insurance sector, including the potential acquisition of stakes in a Vietnamese insurer.
As of March 9, US$1 was equivalent to 6.33 Chinese yuan.
