Starr expands in ‘fast-growing’ Asian market via acquisition
Starr Insurance Companies has expanded its operations in Asia with the acquisition of Thai non-life insurance company FPG.
Starr has entered into an agreement with FPG Insurance Holdings (HK) (FPG) and local Thai shareholders to purchase FPG Insurance Public Company (FPG Thailand) together with local Thai parties.
Starr’s investment will be held by its Bermuda insurance company, Starr Insurance & Reinsurance. The transaction is expected to close in the second quarter of 2022.
Starr expects to strengthen local product offerings with tailored commercial insurance and Accident & Health (A&H) products and plans to further maximize its growth by recruiting and developing local Thai insurance talent.
Previously, Starr served the Thai insurance market primarily through its provision of reinsurance products, including Technical Risks, Casualty, Marine, and A&H products.
According to a recent report by rating agency AM Best, in 2021 Thailand’s non-life insurance market was estimated to be THB 253 billion ($8.3 billion) in terms of direct premium written.
“Thailand is an important, fast-growing insurance market — one of the cornerstones of the Southeast Asia economy,” said Maurice Greenberg (pictured), Starr’s chairman and CEO. “Asia is both commercially and culturally important to Starr, as we trace our roots to an American-owned company founded in Shanghai more than 100 years ago. We look forward to serving the needs of local Thai companies and consumers through this new insurance capability.”
David Zuellig, FPG regional chairman, said: “This transaction reflects the standing of our franchises and is the product of the hard work, persistence, and determination of the FPG Thailand team despite challenging market conditions. The team is excited and ready to work with Starr in bringing the company to the next level.”
Gerard Pennefather from Huntington, strategic advisors to FPG, added: “This is a fantastic outcome for both Starr and FPG. We believe Starr is the ideal home for FPG Thailand to build scale, and expand capabilities and distribution, whilst bringing innovation to the market.”
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