ZURICH--Apr 28, 2014--(BUSINESS WIRE)--ACE Limited (NYSE: ACE) announced today that the company and its local partner have acquired a 60.9% stake in The Siam Commercial Samaggi Insurance PCL, a general insurance company in Thailand, from Siam Commercial Bank.
Established in 1947 and listed on the Stock Exchange of Thailand, Bangkok-based Siam Commercial Samaggi Insurance is a major writer of auto, small commercial and personal accident insurance and distributes its products through both Siam Commercial Bank’s branches and independent agents through the insurer’s own branch network. In 2013, the insurer had approximately $155 million in gross premiums written.
“We are pleased to complete the acquisition of a majority stake in Siam Commercial Samaggi Insurance,” said Evan G. Greenberg, Chairman and Chief Executive Officer, ACE Limited. “This transaction provides a good strategic fit and is quite complementary to our longstanding presence in Thailand and Southeast Asia. The addition of this well-established and trusted insurer in Thailand will accelerate our growth plans by expanding our product and distribution capabilities throughout the country. We also look forward to building on the existing relationship that the company currently has with Siam Commercial Bank, one of Thailand’s largest and most venerable financial institutions.”
In compliance with Thai regulations, ACE and its local Thai partner will make a mandatory tender offer for the remaining 39.1% of Siam Commercial Samaggi Insurance. The total transaction is valued at approximately $190 million at current exchange rates.
ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at: www.acegroup.com.
Cautionary Statement Regarding Forward-Looking Statements:
All forward-looking statements made in this press release related to ACE's share purchase of Siam Commercial Samaggi Insurance PCL and tender offer, or otherwise, reflect ACE’s current views with respect to future events, business transactions and business performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, ACE’s forward-looking statements related to Siam Commercial Samaggi Insurance PCL and the anticipated purchase transaction and tender offer could prove incorrect if the transaction were to not close, if Siam Commercial Samaggi Insurance PCL were to perform differently than currently expected by ACE or if expense-related efficiencies are not realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.