Foreign Investments in Emerging Markets

GlobalData’s 'Insight Report: Foreign Investments in Emerging Markets' analyzes the importance of foreign investment in developing nations in terms of both economic and infrastructural growth.

Foreign direct investment (FDI) is a process of direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding the operations of an existing business. The financial liberalization of emerging economies has assisted insurers in developed markets to establish and solidify their footprints in growing markets.

The increasing attractiveness of emerging markets can be attributed to factors such as growth in consumer spending, rising equity market returns, greater policy flexibility and the growing middle classes. Less volatile economic growth in comparison to developed nations has strengthened income levels, encouraging investment in financial solutions to safeguard earnings and asset investments.

The report also analyzes the developments in foreign investment in each of the emerging nations, highlighting the current trends in investments, the regulatory landscape for foreign insurance in the insurance industry and examples of notable deals that were initiated and committed.

Scope

This report analyzes

The essence of foreign investment in the economic development of emerging nations

Contributions of foreign direct investment to the insurance industry

Country-specific trends on the current state of foreign investment

The regulatory dynamics in emerging countries associated to foreign investment

Deals announced or completed

Key Highlights

The financial liberalization of emerging economies has assisted insurers in developed markets to establish and solidify their footprints in growing markets.

With slow economic growth in developed countries, multinational companies from across the world have started to expand in emerging nations to benefit from high growth prospects.

The current trend has highlighted an increased focus on only mergers and acquisitions (M&As) as a part of cross-border investments.

Argentina ranks fourth among South American countries in terms of FDI stock after Brazil, Chile and Colombia, and sixth in terms of FDI inflow.

The Chinese insurance industry’s fast expansion can be attributed to economic growth, and rises in disposable income and consumer awareness of the benefits of insurance.

In March 2017, the Indian government proposed plans to increase FDI for insurance brokers from 49% to 100% to strengthen the distribution network, and improve and attract more funds to the sector.

Reasons to buy

Build an understanding about the importance of foreign investments in emerging countries.

Develop an insight into foreign investment trends in emerging countries.

Develop an understanding on the regulatory dynamics in each of these countries specific to foreign investment in the insurance industry.

Gain a snapshot of the important deals initiated and completed in emerging countries.

Companies mentioned

Union Life Insurance Co.,International Finance Corporation (IFC),Liberty Mutual Insurance Company,China Pacific Property Insurance Co. Ltd,AIG, RSA Insurance Group Plc, Allianz SE ...