Japanese trading firm Itochu is set to purchase a 20% stake in Thailand's non-life insurer Thaivivat Insurance. According to a release by Itochu, it will invest around THB1bn ($29m) to buy new shares issued by the Thai company.
Itochu insurance business division 1 general manager Kazushi Kawai highlighted the gradual penetration of insurance in the Thai market and expressed confidence in its future prospects.
Thaivivat Insurance primarily focuses on auto insurance and held about 3% share of Thailand's non-life insurance market in 2023. It ranked 11th in terms of revenue among over 40 industry players in Thailand.
Thaivivat Insurance’s partnership with Itochu is expected to provide additional capital and future business expansion opportunities for the company. Though the Thai auto market is currently sluggish 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.