Global multiline property and casualty insurer ACE Group has purchased a 60.9% stake in Thailand-based Siam Commercial Samaggi Insurance, from Siam Commercial Bank, in a $185m worth transaction.
.Bangkok-based Siam Commercial Samaggi was founded in 1947 and operates as an auto, small commercial and personal accident insurer.
The company distributes its products through both Siam Commercial Bank’s branches and independent agents through the insurer’s own extensive branch network. During 2013, the insurer had nearly $155m in gross premiums written.
In January 2014, ACE signed a conditional agreement to acquire the majority stake in Thai’s Siam Commercial Samaggi Insurance.
ACE chairman and CEO Evan Greenberg had said, "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 addition of this well-established and trusted insurer in Thailand will accelerate our growth plans by expanding our product and distribution capabilities throughout the country."
In order to meet the Thai insurance regulations, ACE and its local Thai partner will make a mandatory tender offer for the remaining 39.1% of Siam Commercial Samaggi Insurance.
Barclays and Siam Commercial’s investment bank advised Siam Commercial Bank on the sale while Citigroup advised ACE.
ACE offers commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance.
Image: ACE North American Headquarters: Philadelphia, Pa. – Interior. Photo courtesy of 2014 ACE.