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| The DB Insurance head office in Seoul / Courtesy of DB Insurance |
By Jhoo Dong-chan
DB Insurance is spurring its smooth entry into overseas markets through a series of acquisitions of foreign insurers, according to sources.
The non-life insurer has boosted its presence in the U.S. and Chinese market. It also acquired local insurers in Vietnam to stretch its business abroad.
According to industry sources, DB insurance has entered the Guam, Chinese and Vietnamese markets by acquiring stakes in local companies.
DB took over Vietnam-based non-insurer PTI in 2015, and acquired an 80 percent stake recently in Century Insurance Company (CIC) units operating in Guam, Saipan and Papua New Guinea.
The insurer entered the Chinese market in 2006 by setting up its office. It acquired a 15 percent stake in Ancheng Property & Casualty Insurance there in 2014.
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| DB Insurance Chairman Kim Jeong-nam |
Unlike other insurers first establishing a corporate body abroad and then focusing mainly on business with Korean companies and people there, DB Insurance has acquired shares in local insurers abroad. Its localization strategy has concentrated mainly on locals in these countries.
Car insurance and home fire insurance are two major pillars in the firm's sales there. A DB insurance official said the non-life insurer has faced less difficulty there since local insurers continue using their own names in sales so customers feel more continuity.
Thanks to its localization strategy focusing on locals, these firms owned by DB Insurance are successfully boosting the presence in their own countries.
Following DB's acquisition in its stake, CIC Guam has become the largest insurance company there with a 17 percent market share.
"DB Insurance has aggressively sought opportunities abroad due to Korea's low birthrate and downward trend in policy rate," the official said.
"In a bid to overcome the ever-worsening business environment in Korea, the firm will do its best to strengthen its presence in the American, Chinese and Guam markets."
