Fairfax Financial Holdings has agreed to acquire 25% of the issued and outstanding shares of Thai reinsurer, Thai Reinsurance Public Company, for $70m.
As part of the transaction, Fairfax will nominate two members to the Board of Directors of Thai Re and also assist Thai Re with its investment portfolio.
Fairfax chairman and CEO Prem Watsa said that Thai Re CEO Surachai Sirivallop had more than 22 years of experience in underwriting profitability.
The transaction is expected to close in the second quarter of 2012, which is subject to regulatory and shareholders’ approval. Recently, Thai Re completed its previous rights offering.
With over Baht2bn, Thai Re offers reinsurance coverage for property, casualty, engineering, marine, and life customers as well as risk management consulting, technical assistance, marketing support, education and information services.
Fairfax provides property and casualty insurance and reinsurance and investment management services primarily through its subsidiaries.