Insurance firm Fairfax Financial Holdings, through its wholly-owned subsidiary Fairfax Asia, has signed an agreement to acquire 35% stake in BIDV Insurance (BIC).

Terms of the deal have not been disclosed.

BIC is a non-life insurer in Vietnam, which has an exclusive bancassurance arrangement with the Bank for Investment and Development JSC (BIDV), one of the largest banks in Vietnam.

The company reported consolidated gross written premiums of around $60m in 2014.

Fairfax chairman and CEO Prem Watsa said: "We are looking forward to strategically investing in BIC and working with Pham Quang Tung , the Chairman of BIC, utilizing the best practices of Fairfax so that BIC will become the leading non-life insurer in Vietnam.

"BIC has a very strong presence in Vietnam, as well as Cambodia and Laos, and this is a great opportunity for us to expand in the region with a partner with a strong history of growth and focus on profitability."

Subject to regulatory approval in Vietnam, the deal is expected to be completed in the third quarter of this year.

Fairfax, through its subsidiaries, offers property and casualty insurance and reinsurance and investment management services.