Mitsui Sumitomo Insurance invests in IKBZ Insurance, a major private non-life insurance company in Myanmar
Mitsui Sumitomo Insurance Co., Ltd. ("MSI"), a member of MS&AD Insurance Group, has entered into an agreement with IKBZ Insurance Co., Ltd. ("IKBZ"), a major private non-life insurance company in Myanmar, submitted the application for the investment/ establishment of joint venture to the local authorities and passed the regulatory review on July 31.
With immediate effect, MSI will carry out the necessary procedures based on instructions from the local authorities and obtain the final approval by the end of October.
MSI will continue to provide high-quality service to its customers, strengthen its business presence in the rapidly growing Asian region, and aim to achieve the sustainable development of its international business.
Myanmar has achieved high economic growth based on its high population growth and increase in infrastructure investment, and the country’s non-life insurance market is expected to expand further in future. MSI has provided insurance products and services to Japanese companies in Myanmar by opening an office in Yangon in October 1995 and obtaining a license to operate in the Thilawa Special Economic Zone in May 2015.
For the first time, Myanmar’s government policy has made it possible for foreign investors to invest in private insurance companies, resulting in MSI’s decision to invest in IKBZ by leveraging on its customer service for Japanese companies operating in Myanmar with its high growth potential. MSI will strive to provide excellent service to Japanese companies and its non-life insurance market in Myanmar by combining IKBZ's strong presence among the private non-life insurance sector and MSI's established reputation and expertise in Asian countries.
Investment Summary (subject to the final approval of the local authorities)
|Investee||IKBZ Insurance Co., Ltd.|
|Percentage of investment||10%|
|Schedule of investment||October 2019 (tentative)|
Overview of IKBZ Insurance Co., Ltd.
|Name||IKBZ Insurance Co., Ltd.|
|Business Profile:||non-life insurance business|
|Characteristics||It is an insurance company of the Kanbawza Group, one of the largest corporate groups in Myanmar, engaged in banking, aviation, hotel, etc., and has an extensive network in Myanmar.|
|Year Established||September 2012|
|Location*1||Head Office: Yangon, 19 branches|
|Number of Employees*1||638|
|Gross Written premium*1,2||MMK 21.2 Billion (about 1.48 Billion Yen)|
*1: As of the end of March 2019 *2: Conversion rate: 1MKK=0.07 yen
About MSIG Holdings (Asia) Pte Ltd (“MSIG Asia”)
For over 100 years, MSIG has been Asia’s leading general insurance brand. With our wealth of experience and commitment to this region, we are able to leverage on our multi-channel distribution, strong partnerships with intermediaries and extensive geographical network to offer a wide range of insurance solutions across personal and commercial lines. MSIG is represented in all markets in ASEAN, and also in Australia, New Zealand, Hong Kong, China, Korea, India and Taiwan, with over 9,200 employees.
Located in Singapore, MSIG Asia is the regional holding company and a wholly owned subsidiary of Mitsui Sumitomo Insurance Company, Limited, within the wider MS&AD Insurance Group – one of the top 10 non-life insurance groups in the world.
About Mitsui Sumitomo Insurance Company, Limited (“MSI”)
MSI was formed in October 2001 through a merger between the former Mitsui Marine & Fire Insurance Co., Ltd. ("Mitsui Marine") and the former Sumitomo Marine & Fire Insurance Co., Ltd. ("Sumitomo Marine"). Mitsui Marine and Sumitomo Marine were leading Japanese non-life insurance companies with proud and long histories, having been established in 1918 and 1893, respectively. MSI also benefits from being a member of MS&AD Insurance Group – one of the largest general insurance groups in the world.
About MS&AD Insurance Group (“MS&AD”)
Awarded ‘General Insurance Company of the Year’ by the Asia Insurance Review in 2011, MS&AD was formed in April 2010 from the business integration of the Mitsui Sumitomo Insurance Group Holdings, Inc., Aioi Insurance Co. Ltd., and Nissay Dowa General Insurance Co., Ltd. Today MS&AD is one of the largest general insurance groups in the world with presence in over 39 countries and regions, 16 of which are in Asia and Oceania. Based in Japan, MS&AD is active in five business domains, namely domestic (Japanese) non-life insurance, domestic (Japanese) life insurance, overseas business, financial services business and risk-related business.