The Ministry of Finance has granted a licence to Asia Commercial Bank (ACB) to establish a non-life insurance subsidiary with charter capital of VND500bn ($19m).
The new company, ACB Insurance, will have its headquarters in Bình Tây Ward, HCM City, and is licensed to operate for 99 years. ACB Assets Management Company will contribute VND455bn, or 91% of the new company’s capital and ACB Securities Company will contribute the remaining VND45bn, or 9%.
ACB Insurance will commence operations within the next 12 months on completion of the necessary statutory requirements of the Ministry of Finance.
Premium revenue in the first five months of the current financial year of the country’s 33 non-life insurers rose 12.02% to VND39.4tn, supported by stronger demand for property and health insurance as well as a recovery in business activity. The non- life insurance industry’s assets touched VND168tn and investments rose 22.21% to VND98tn.