Samsung Fire & Marine Insurance Company, the general insurance business of the business mega-conglomerate, has agreed to purchase a 20% interest in PJICO, an insurance unit of Vietnam’s largest petrol dealer Petrolimex.

The transaction is estimated to be worth VND532 billion (US$23.4 million), and Samsung Fire & Marine Insurance is required to hold the shares for at least five years.

Upon completion of the deal, Petrolimex’s ownership of PJICO will decrease from 51.18% to 40.95%. The rest of the insurer’s shareholders, such as Vietcombank, Vietnam Reinsurance Corporation and others, will have their combined holdings lowered from 37.77% to 23.19%.

Petrolimex will continue to provide support for PJICO by offering its products through its retail network. With an over 50% share in the Vietnamese petrol industry, it is well-poised to help PJICO gain ground in the country’s non-life insurance sector.

“The strategic partnership with Samsung Fire & Marine Insurance is poised to create a significant driving force for PJICO’s growth and business performance within the next five years and beyond,” PJICO chief executive Dao Nam Hai told Deal Street Asia.

PJICO had a total revenue of VND600 billion (US$26.4 million) for the first quarter of 2017, an 8.5% year-on-year rise. Pre-tax profits also rose by 31% to US$1.76 million.


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