Ergo Acquires Stake in Thai Insurer

The ERGO Group is entering the insurance market in Thailand by acquiring a minority share of 40.26 percent of Thaisri Insurance from Pailuck Company Ltd., Bangkok. Representatives of both companies signed a share purchase agreement Thursday.

The parties agreed not to disclose the purchase price. With the acquisition, ERGO strengthens its presence in Asia as one of its key markets and continues to pursue its international growth strategy.

Thailand’s non-life insurance market offers attractive growth opportunities: Premiums are expected to grow by seven percent per year from 2016 to 2020. The market is highly profitable with net combined ratios in the low 90s.

Thaisri Insurance offers a wide range of property-casualty insurance products focusing on motor and property insurance.

The company recorded a premium income equivalent to 50.3 million euros last year, with a profit amounting to an equivalent of 8.9 million euros.

Thaisri employs about 450 employees with over 70 branches, agent offices and service centres nationwide.

Upon completion of the transaction, the share ownership in Thaisri Insurance of ERGO and members of the founding families Panichewa and Srifuengfung will be 40.26 percent and 59.74 percent, respectively.

Closing of the acquisition is subject to regulatory approval customary for transactions of this type. – BusinessNewsAsia.com

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