VietNamNet Bridge – The affair is expected to be completed in the third quarter this year, bringing the company's charter capital to over VND1 trillion (nearly $47.5 million), of which the ownership of the Bank for Investment and Development of Vietnam (BIDV) will fall from 78.4% to 51%.

BIDV Insurance Corporation (BIC) has signed a share purchase agreement with Fairfax Asia Limited, a Canada-based insurance firm. Fairfax will buy a 35% newly-issued stake of BIC, equivalent to over 41 million shares to become BIC’s foreign strategic investor.

BIC will elect four additional members of Fairfax to the Board of Directors and the Supervisory Board in the 2015-2020 term after the transaction is completed.

Earlier, the chairman of BIC Pham Quang Tung said under BIC’s plan in early 2014, the corporation had planned to sell up to 30% of capital for its strategic shareholder, but after a year of negotiations, the company decided to raise the rate to 35% as the foreign investor wanted to have a large enough percentage of ownership for its long-term commitment.

Fairfax will provide technical assistance for BIC to enhance insurance operations, strengthen risk management, develop distribution channels, and manage the portfolio.

"Vietnam is an insurance market that is growing fast. Fairfax realizes a lot of potential for business activities of BIC as well as through its subsidiaries in Cambodia and Laos," said Ramaswamy Athappan, chairman and CEO of Fairfax Asia.

In the first quarter of 2015, BIC’s pre-tax profit reached VND44.3 billion (over $2 million), up 30% compared to the same period in 2010 and reached 30% of the plan for 2015.

The company now owns 65% stake in Laos Vietnam Insurance joint venture (LVI) and represents BIDV to manage 51% capital in Cambodia Vietnam Insurance (CVI).

Fairfax Asia Limited is a member of Fairfax Financial Holdings Limited, a global insurance group listed on the Toronto Stock Exchange (Canada). In 2014, Fairfax earned $10 billion in revenue and $1.67 billion of after-tax profit. In Asia, the company has branches in India, Indonesia, China, Malaysia, Singapore, Hong Kong (China), Thailand and Sri Lanka.

Na Son