ACE to acquire majority stake in Thai insurer
ACE will acquire a 60.9 percent stake in Siam Commercial Samaggi Insurance, a general insurance company in Thailand, from Siam Commercial Bank.
Bangkok-based Siam Commercial Samaggi Insurance is a major writer of auto, small commercial and personal accident insurance. In 2012, the insurer had approximately $138 million in gross premiums written.
“Thailand is the second-largest economy in Southeast Asia and at the heart of Indochina – a region that includes Vietnam and Myanmar. ACE has been operating there for many years and has built a strong local insurance business focused on industrial commercial property and casualty, accident and health, and life,” said Evan Greenberg, chairman and chief executive officer, ACE. “This transaction presents an excellent opportunity for ACE to further build our business in this fast-growing market by expanding our presence in personal and small commercial insurance.”
The transaction is expected to complete in the second quarter of 2014, subject to regulatory approval.
On closing of this transaction, in compliance with Thai regulations, ACE and its local Thai partner will make a mandatory tender offer for the remaining 39.1 percent of Siam Commercial Samaggi Insurance. The total transaction is valued at approximately $185 million.
