Owners of Thai Insurer Syn Mun Kong Explore Sale of Majority Stake

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The controlling shareholders of Thai insurer Syn Mun Kong Insurance Pcl are exploring the sale of a majority stake in the firm and have picked several strategic players to advance into the next round of bidding, according to people familiar with the matter.

Assicurazioni Generali SpA and Liberty Mutual Group are among those selected to advance, the people said, asking not to be named as the matter is private. Syn Mun Kong is working with an adviser on the deal, which could be valued at about $200 million, they said. The sale could include a fresh investment of about $100 million, they added.

Deliberations are ongoing and details on deal structure and size could still change, they added. Representatives for Generali and Liberty declined to comment, while a representative for Syn Mun Kong couldn’t immediately respond to requests for comment.

Founded in 1951, the Bangkok-based insurer offers products including auto, health, accident and travel insurance, according to its 2020 annual report.

The Dusdeesurapot family led by Chairman Reungvit Dusdeesurapot owned a 36% stake in the insurer as of May 27, 2020, the annual report shows. The family held another 25% via Dusdeesurapot Holding Co.

Syn Mun Kong reported 757.4 million baht ($22.5 million) net profit in 2020, an increase of nearly 12% from 2019, according to the annual report. The company swung to a net loss of 3.7 billion baht in the third quarter of 2021 from a net profit of 160.2 million baht during the same period last year, according to a statement. Syn Mun Kong attributed the loss to a “huge increase” in Covid-19-related claims.

Shares in the insurer rose nearly 1% in Bangkok on Tuesday. They have tumbled more than 40% this year, giving it a market value of about $130 million.

–With assistance from Anuchit Nguyen, Sally Bakewell and Thomas Kutty Abraham.

Photograph: The Sathorn district of Bangkok. Photo credit: Brent Lewin/Bloomberg.