Tokio Marine Holdings is set to become the majority owner of Bao Viet Tokio Marine Insurance after announcing its move to acquire additional stake in the Vietnamese insurer.
The company said it has reached an agreement with Bao Viet Holdings to buy an additional 2% stake for an undisclosed amount, the Japan Times
With the acquisition, Tokio Marine would be increasing its stake from 49% to 51%.
Tokio Marine hopes to complete the transaction by the end of June, according to the Japan Times.
The report said Tokio Marine seeks to expand its operations in Vietnam, where demand for automobile and other insurance products for individuals is expected to rise due to soaring incomes and high economic growth.
Established in 1996, Bao Viet Tokio Marine Insurance is a joint venture between Tokio Marine Holdings and Bao Viet Holdings, the largest insurance group in Vietnam.
Bao Viet Tokio Marine Insurance provides non-life insurance products and services for all international and local clients, including both organizations and individuals.