Asset management company VB Holdings has announced its entry into the insurance market through an intended acquisition of SUN Insurance Company Ltd.
The two companies are reported to be in talks over VB Holdings’ intention to buy “a significant stake and to have board representation”, to be funded from cash reserves.
“In the last five years, SUN Insurance has updated its product offerings to meet the market demand for more comprehensive insurance coverage by introducing limited cyclone coverage, new vehicle replacement and limited perils coverage insurance, and establishing a Micro-insurance Product in conjunction with the United Nations Capital Development Fund (UNCDF),” the publicly listed VB Holdings announced.
“The investment that VB Holdings Ltd is seeking in SUN Insurance could represent above 20 per cent of VB Holdings Ltd’s total asset value.”
VB Holdings’ total assets were valued at $21.16 million in 2022, according to its 2022 annual report, putting the acquisition value at an estimated $4.2m.
VBH was listed on the South Pacific Stock Exchange in 2001 and has since expanded its business from being a sole property asset management company to fleet management services and has substantially invested in fleet leasing assets over the past 20 years.
