Tokio Marine Insurance Thailand Pcl, the Thai subsidiary of Japan’s oldest insurance group Tokio Marine, has merged with Safety Insurance Pcl, to create a new entity – Tokio Marine Safety Insurance Thailand (TMSTH).
Suteechai Santivarakum from Safety Insurance has taken on the role of CEO of TMSTH, while Hironori Kiryu is the president of the newly-created organisation.
The merger is aimed at making TMSTH one of Thailand’s largest insurers with a gross written premium target of 21 billion baht ($675 million) and a net profit of 1.1 billion baht in three years, said Santivarakum.
“The Tokio Marine Group will utilise and share its knowledge and global expertise to support various business functions, as well as our agents and brokers and business partners, to deliver quality services to our customers nationwide,” added Kiryu.
The business integration is also expected to boost the Japanese insurer’s presence in Southeast Asia. “TMSTH will become one of the largest operations in the Asia region for the Tokio Marine Group,” said Saloon Tham, CEO at Tokio Marine Asia.
TMSTH will distribute its products and services through its established branch service network spanning across Thailand; Japanese clientele base operating in Thailand and Mekong countries. Besides, they will also cater to agents and brokers with both local and international exposure; dealers finance and OEM; as well as alternative channels providing opportunities for distribution through B2B2C, affinities whilst leveraging digital innovative solutions within the Tokio Marine Group.
In 2018, the Japanese firm announced it had entered into agreements with Insurance Australia Group Limited (IAG) to acquire the latter’s Thailand and Indonesia businesses for A$525 million ($352 million). IAG’s Thai unit was Safety Insurance.
Tokio Marine then said the combination of Safety and itself will create the third-largest property and casualty insurance business with an 8 per cent market share, the largest among the foreign-owned insurers, and the second-largest motor insurer in Thailand.