The corporate scene in the Thai insurance market has been very active in recent weeks as some players gear themselves up for a bigger presence in the sector.
Among them, ThaiSri Insurance — the Thai non-life subsidiary of German insurer Ergo that in turn is part of the Munich Re group — has merged with another general insurer, Nam Seng Insurance. The merged entity was launched on 7 June as Ergo Insurance (Thailand) Public Company Limited.
In October 2022, ThaiSri agreed to acquire Nam Seng Insurance for approximately THB3bn ($86.2m). The deal was completed early this year and Nam Seng Insurance has been delisted from the stock exchange.
In 2016, Ergo entered the insurance market in Thailand with the acquisition of a 40.26% stake in ThaiSri. By January 2023, the Ergo Group had increased its shareholdings in ThaiSri to 83.8%.
In the first quarter of 2023, Nam Seng Insurance (founded in 1948) posted total premiums of THB739.80m while ThaiSri Insurance (founded in 1953) reported premium revenue of THB1,788.14m for the same quarter.
Separately, Thaivivat Insurance which is a listed non-life insurer has been restructured. The group has set up a private holding company, Thaivivat Holdings. The objective is to inject more flexibility for business expansion, sharpen competitiveness and reduce investment restrictions. Shareholders of TVI are to swap their shares for TVH shares in the ratio of 1:1 between 15 June and 6 July. Thaivivat Insurance was founded in 1951.
Thaivivat Insurance has shown a strong performance for 1Q2023, for which it reported a net profit of THB106m on total premiums of THB1.7bn. Premiums jumped by 19% year on year due to growth in both motor and non-motor branches. The insurer plans to expand its motor insurance market share, as it increases its product offerings for electric vehicles. The company has said that it was in the process of testing an AI-powered car insurance claim system that would increase convenience, transparency, and efficiency.
