IAG has conditionally agreed to acquire 30% of Vietnam-based motor insurer AAA Assurance Corporation (AAA).

The move further boosts IAG’s Asian presence after the insurer recently agreed to acquire Malaysian insurer Kurnia through its JV partner AmG and took up a 20% stake in Chinese general insurer Bohai.

The company hopes to increase its business in Asia to 10% of gross written premium by 2016.

The latest acquisition, valued at less than $20 million, will let IAG enter the rapidly growing Vietnamese insurance market through an established participant.

CEO Mike Wilkins says the market has been growing at a compound rate of 25% a year since 2009 and is expected to expand at similar levels for another three to five years.

AAA is Vietnam’s sixth-largest motor insurer and sells directly to customers through regional and city branches.

IAG Asia CEO Justin Breheny says the group will have an option to increase its share in AAA to 49% subject to regulatory approval.

“In line with our strategy, IAG would bring to this partnership proven capabilities in the areas of underwriting, pricing and actuarial, and risk and claims management, enabling AAA to expand its operations,” he said.

Under the joint venture arrangements, IAG will have board representation, the right to appoint certain management personnel and affirmative voting rights over key business matters.

The investment is subject to regulatory approval, which IAG expects to be completed by June.