Tokio Marine Holdings Inc., in its statement on June 19, insured Australian and Australian insurance companies Insurance Australia Group Ltd. (IAG) for a cash purchase of approximately A $ 525 million ($ 42.8 billion; $ 390 million).
The deal, which involves purchasing IAG’s 98.6 percent stake in Safety Insurance Public Company Ltd. (Thailand), adds a major motor trading book to Tokio Marine’s existing insurance business in Thailand.
Saying that the books are complementary, Tokio Marine said that the Japanese insurance company’s basic power in Thailand is now commercial line insurance. The combination combines Tokio Marine into the third largest property / casualty insurance position in Thailand and the second-ranked motor insurance company. This figure added gross written premiums of $ 9.2 billion to Thai Bhat ($ 279 million) and $ 9.0 billion ($ 244 million).
Tokio Marine also envisages Tokio Marine group companies’ private insurance products through Cross’s national distribution channels and uses Safety’s expertise and infrastructure to improve Tokio Marine Group’s overall claim on the quality and efficiency of service in Thailand.
Tokio Marine also said that IAG will buy 80 per cent of PT Asuransi Parolamas (Parolamas) in Jakarta, Indonesia and pay a premium of about 18 billion Indonesian Rupees (about $ 1.3 million).
Expanding its presence in developed markets with opportunities such as the acquisition of Kiln and HCC in 2015, Tokio Marine aims to significantly increase its presence in Asia and other emerging markets, which is only 10 percent of its contribution to international business profits. today.
“In view of the experience in the region, I think that Tokio Marine is an ideal owner and that this is a good result for the employees, customers and other stakeholders,” said Peter Harmer, CEO and CEO of IAG.
IAG also announced that it has reached an agreement not to give any further details of the deal at 73.07% of AAA Assurance Corp. in Vietnam.
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IAG expects all transactions to be finalized by regulatory approvals or notifications within the fiscal year ending June 30, 2019.
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