Thaisri Insurance's two major shareholders, the Panichewa and Srifuengfung families, have reached an agreement to sell a combined 40.26% stake to Germany-based ERGO Group Ag.
After the transaction, expected to be completed in the next three months, the families will see their shareholding fall to 59.74% from 93.5%, said the Thai insurer's statement without disclosing the deal value.
With the acquisition, ERGO strengthens its presence in Asia as one of its key markets and continues to pursue its international growth strategy.
The new shareholder should help the company to develop procedures and management strategies in line with international standards, said Natee Panichewa, Thaisri's chief executive.
Southeast Asia has been an attractive destination for global insurers in recent years, thanks to low insurance penetration in the region and an expanding middle class that can afford to protect its living standards.
Thaisri offers a wide range of property-casualty insurance products focusing on motor and property insurance.
In 2015, the Thai insurer recorded total premiums of 2.55 billion baht and net profit of 452 million. It aims for 7% annual growth in premiums from 2016-20. The company's paid-up capital is 440 million baht.