13 January 2014News

ACE acquires majority stake in Thai insurer

ACE has acquired a 60.9 percent stake in Thai insurer Siam Commercial Samaggi Insurance, which writes $138 million of auto, small commercial and personal accident insurance in Thailand.

Thailand is the second largest economy in Southeast Asia and ACE chairman and CEO, Evan Greenberg says that the acquisition of Siam Commercial forms part of the company’s strategic ambitions to further develop its already strong local insurance presence, which has traditionally focused on industrial clients, casualty and life.

Commenting on the transaction, Greenberg says: “Siam Commercial Samaggi Insurance is a well-established and trusted insurer in Thailand. 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.”

Acquiring the insurer from Siam Commercial Bank, Greenberg added: “We look forward to forging a relationship with Siam Commercial Bank, one of the country’s largest and most venerable financial institutions, and we intend to grow the number of products and services offered through Siam Commercial Samaggi Insurance by leveraging our global product expertise.”

On the closing of the transaction, and 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. The total transaction is valued at approximately $185 million.