Insurance Australia Group announced that it has agreed to purchase a stake in Royal and SunAlliance (Thailand) Ltd. the country’s second largest insurer.
Neither the size of the stake nor the purchase price were disclosed.
The move is IAG’s second investment in the Thai market. In 1998 it acquired a 20 percent stake in another general insurer, Safety Insurance.
IAG CFO George Venardos observed that the new acquisition is in line with the general strategy of Australia’s largest insurer to establish a presence in Asian markets and to participate in the consolidation of the Thai general insurance market. “While the acquisition of Royal and SunAlliance Thailand is a small purchase, it fits with our strategy of building a portfolio of general insurance assets in Asia,” he stated.
“With a population of more than 60 million and strong forecast economic prospects, we identified Thailand’s general insurance market as having solid growth potential,” Venardos continued.
R&SA (Thailand) writes both personal and commercial business and generates approximately $A35 million (U.S. $26.8 million) in annual gross written premium.
Was this article valuable?
Here are more articles you may enjoy.