AZ/AGF Insurance (Vietnam) Co., Ltd.

completed

The company is a fully owned subsidiary of Allianz AG and its affiliate AGF S.A. In November 1999, the company obtained the license to sell non-life insurance policies to foreign-funded companies in Vietnam. Presently, the company has obtained government approval to expand its business to domestic companies. This project will help the only existing non-state owned, non-life insurance company in Vietnam to grow and emerge as a significant player.Development ImpactDevelopment impact will be measured by the following factors:growth rates (of premium, assets, profits and other financial indicators) relative to large state-owned insurance companies;profitability compared with industry average and industry leaders;share of premium to non-state companies in total premium relative to industry averages and market leaders; andimpact on markets, i.e. increasing market share; mergers with or acquisitions of other small state-dominated insurance companies; pressure on other insurance companies to attract outside investors and adopt similar business practices.IFC’s RoleAlthough there are a number of foreign insurers that have invested in insurance companies in Vietnam, the company is the only non-life insurance company without state-ownership, as compared to others which have state ownership of at least 50%. IFC will give critical support to the company to grow into a significant player in the local market;IFC’s participation will enhance the credentials of the company by adding diversity to its business expertise through the infusion of an independent investor to its shareholding; andIFC’s participation adds to the company’s effort in setting benchmarks for the industry for corporate governance, transparency, and business and accounting practices.