MIC to look for strategic foreign investor in potential M&A deal

MIC, the non-life insurer arm of MB Group, announced a bold new strategy at its recent AGM on April 20, which focused on attracting foreign investment, forging strategic partnerships, and a potential merger and acquisition deal.

The move comes amidst growing demand for innovative insurance products in Vietnam, where MIC is already a major player in the industry.

In charting a new course for growth, MIC is seeking to tap into the expertise and resources of a strategic partner, with the aim of augmenting its operational scale, improving financial performance, and driving new levels of innovation. This could include upgrading its IT infrastructure, diversifying its product portfolio, and expanding its sales channels, among other initiatives.

As part of this effort, MIC has already attracted interest from leading investment firms, with the Finland-based PYN Elite Fund becoming a major shareholder with a stake of nearly 6.13 per cent.

Chairman of the Board of Directors Uong Dong Hung said, “However, the corporation remains committed to finding the right strategic partner that can best meet its needs and drive its long-term success.”

With its sights set on becoming a regional leader in the insurance industry, the company is taking bold steps to position itself for success, including reaching out to potential partners from Europe and Japan.

This year, MIC will continue to execute its 2022-2026 strategic plan, which entails designing a novel business model, developing a cutting-edge digital platform, leveraging data, and capitalising on MB Group's ecosystem advantages.

The insurer aims to claim a spot in the top three in terms of market share by 2026 and to lead the digital transformation charge.

Moreover, MIC has decided to channel over VND100 billion ($4.3 million) of the funds raised in 2023 towards investing in infrastructure and IT solutions, thereby enhancing its technological prowess. During the shareholders' meeting, Hung lauded this level of investment as being quite substantial when compared to that of other industry players.

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