German insurance company ERGO has entered the growing Thai market by acquiring 40% of Thaisri Insurance.
The German company made the purchase in late May, in a strategic move to strengthen their presence in a key Asian market and to further pursue international growth.
Thailand’s non-life insurance market offers excellent growth opportunities at the moment, for investors and insurers from other nations seeking to expand their reach.
At present, premiums are expected to rise by 7% each year between 2016 and 2020, making the Thai market highly profitable. What’s more, net combined ratios remain in the low 90s.
Within this growing market, Thaisri specifically offers a wide range of options, including property-casualty insurance and products that focus on motor and property insurance.
The Thai insurance company reported a record income in 2015, equivalent to €50 million, with €8.9 million in profit. They now have 450 employees and 70 offices and service centres nationwide. Such a growing, successful company makes an excellent investment for ERGO.
With this transaction completed, ERGO now has a 40.26% stake in Thaisri, with the company’s founders retaining a majority 59.7% share. Wrapping up the deal relies on the usual regulatory approval.