ACE to acquire stake in Thailand insurer

ACE Limited announced that the company and its local partner have reached a conditional agreement to purchase a 60.9 percent stake in The Siam Commercial Samaggi Insurance PCL, 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 and distributes its products through both Siam Commercial Bank’s branches and independent agents through the insurer’s own extensive branch network. In 2012, the insurer had approximately USD138 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 G. Greenberg, chairman and chief executive officer, ACE Limited.

The transaction is expected to be completed in the second quarter of 2014 and is subject to due diligence by ACE and customary closing conditions including Siam Commercial Bank shareholder 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.