ZURICH--(BUSINESS WIRE)--
ACE Limited (NYSE: ACE) announced today that the company and its local
partner have reached a conditional agreement to purchase 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 extensive branch network.
In 2012, the insurer had approximately $138 million in gross premiums
written.
“Thailand is the second-largest economy in Southeast Asia and at the
heart of Indochina – a region that includes Vietnam and Myanmar. ACE has
been operating there for many years and has built a strong local
insurance business focused on industrial commercial property and
casualty, accident and health, and life,” said Evan G. Greenberg,
Chairman and Chief Executive Officer, ACE Limited. “Siam Commercial
Samaggi Insurance is a well-established and trusted insurer in Thailand.
This transaction presents an excellent opportunity for ACE to further
build our business in this fast-growing market by expanding our presence
in personal and small commercial insurance. We look forward to forging a
relationship with Siam Commercial Bank, one of the country’s largest and
most venerable financial institutions, and we intend to grow the number
of products and services offered through Siam Commercial Samaggi
Insurance by leveraging our global product expertise. We are confident
that over the medium and long term this business will provide
outstanding value to our customers and business partners and generate
superior returns for our shareholders, and we expect this transaction
will be immediately accretive to our earnings.”
The transaction is expected to be completed in the second quarter of
2014 and is subject to due diligence by ACE and customary closing
conditions including Siam Commercial Bank shareholder approval. On
closing of this transaction, 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 $185 million.
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.
Source: ACE Limited