Allianz SE and SET-listed Sri Ayudhya Capital Plc (Ayud) have completed share swap and cash deals with a combined asset size of over 6 billion baht, aiming for 10% growth in gross written premiums.
The merger combined assets of Allianz General Insurance (AZTH) worth 3.1 billion baht and Sri Ayudhya General Insurance (SAGI), Ayud's wholly owned subsidiary, worth 3.5 billion baht. Total assets of 6.6 billion baht rank the company 10th among domestic insurance firms.
Allianz SE has become the largest shareholder of Ayud after the deal. Ayud will be renamed Allianz Ayudhya Capital Plc and continues to be listed on the Stock Exchange of Thailand under the ticker symbol AYUD.
SAGI will be renamed Allianz Ayudhya General Insurance Plc.
Bryan Smith, president and chief executive of Allianz Ayudhya Capital and country manager of Allianz Thailand, said the merger will integrate two different focuses of the two non-life insurance companies: AZTH concentrates on the retail segment, while SAGI specialises in brokerage customers.
Key insurance-related entities will be under the Allianz Ayudhya brand to enhance local market presence and deliver a consistent experience for customers, Mr Smith said.
From here on out, the Allianz Ayudhya brand will reference not just life and health insurance, but it will also reflect the full range of insurance products, including property insurance, casualty insurance, motor insurance, travel insurance and accident insurance, he said.
Allianz Ayudhya aims to increase gross written premiums for non-life insurance business by 10% this year, outpacing the industry's growth forecast of 6%.
"There are plenty of non-life companies in Thailand," Mr Smith said. "We need to be bigger if we want to grow in this business and implement digitisation to the business."
