Global multiline property and casualty insurer ACE Group has reached a conditional agreement to acquire a 60.9% stake in Thai general insurance company Siam Commercial Samaggi Insurance, for $185m.
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 2012, the insurer had nearly $138m in gross premiums written.
ACE chairman and CEO Evan Greenberg 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.
"We are confident that over the medium and long term this business will provide outstanding value to our customers and business partners and generate superior returns for our shareholders, and we expect this transaction will be immediately accretive to our earnings."
Subject to due diligence by ACE and customary closing conditions, the transaction is expected to conclude during the second quarter of 2014.
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.