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How to Best Split a Myanmar Insurance Company in a Life and a Non-Life Corporate Entity?

How to Best Split a Myanmar Insurance Company in a Life and a Non-Life Corporate Entity?

April 14, 2019

Most of the insurance companies which Myanmar has licensed since the liberalization of the sector to the local, private sector in 2013 are actually composite insurance companies.

Highlights of this note

  • Life and Non-Life entities may not hold shares in each other
  • Form one, not two new entities
  • How to transfer the Life business to the NewCo?
  • Or, an alternative structure without cash
  • Not that fast
  • How much taxes will we need to pay?
  • What does it take to transfer the Life business?

AUTHORS

Edwin is the senior partner of VDB Loi and a leading foreign legal advisor living in Myanmar since 2012. A frequent advisor to the Government on transactions and privatizations in energy, transportation and telecom, he is widely recognized for his “vast knowledge” (Legal 500) and his ability “to get difficult things through the bureaucracy ” (Chambers, 2016). He advises international financial institutions on their largest Myanmar transactions, oil and gas supermajors, a greenfield multi- billion US$ telecom project and the Japanese Government on the Thilawa SEZ. He assisted two newly licensed foreign banks setup in Myanmar, acted for the sponsor of an 800MUS$ urban infrastructure PPP project and worked on 6 out of 7 power deals inked in 2016.
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Qualified both in China and in New York, Edith is a senior associate based in our Yangon Office where she advises clients for commercial transactions across infrastructure, banking and financing as well as telecommunications sectors. She also represents clients in project negotiations with the Myanmar Government.


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