Tokyo (VNA) – Japanese trading firm Itochu is set to purchase a 20% stake in Thailand's non-life insurer Thaivivat Insurance, a deal that highlights the global investor’s interest in the Southeast Asian country’s growing insurance market.
Itochu will invest around 1 billion THB (29 million USD) to buy new shares issued by the Thai company, according to an announcement on January 16. It said there are still fewer customers willing to buy insurance compared to developed nations, creating potential for future market growth.
Kazushi Kawai, General Manager of Itochu's Insurance Business Division 1, highlighted the gradual penetration of insurance in the Thai market, expressing confidence in its future prospects.
Thaivivat Insurance, primarily focused on auto insurance, held about 3% of Thailand's non-life insurance market in 2023, ranking 11th in terms of revenue among over 40 industry players. The partnership with Itochu is expected to provide additional capital and future business expansion opportunities for Thaivivat Insurance.
Despite a sluggish Thai auto market due to rising household debt, Thaivivat has achieved an average annual insurance sales growth of approximately 11% from 2019 to 2023, outperforming the industry's average of 4% in Thailand.
Itochu's move aligns with a broader trend of investors from developed economies, such as Japan, seeking opportunities in Southeast Asia's insurance sector, as evidenced by Sumitomo Life Insurance's acquisition of Singapore Life Holdings.
With the region's stable economic growth, Southeast Asia's insurance sector has attracted investors from developed economies like Japan in recent years, including Sumitomo Life Insurance's acquisition of Singapore Life Holdings./.
