Thai Life makes acquisition in Myanmar
published : 16 Aug 2019 at 18:25
writer: Wichit Chantanusornsiri
Thai Life Insurance has struck a deal to take a 35% stake in Citizen Business Insurance (CB Insurance), becoming the first Asean insurer to enter Myanmar's insurance field.
"This partnership will give CB Insurance a competitive advantage by leveraging Thai Life's actuarial and managerial expertise, as well as product distribution channel development, which has proven to be successful in Thailand," Chai Chaiyawan, president of Thai Life Insurance said in a statement. The company did not reveal the investment amount.
Penetrating Myanmar's insurance market aligns with the company's strategy to expand operations to other countries in Asean, he said.
Thai Life will transfer know-how and technology to provide a full range of life insurance coverage to meet demand from Myanmar's customers, said Mr Chai.
The company will promote savings and investment-linked insurance products, which are insurance types that are in demand, and products will be developed further to better serve demand.
"The life insurance business in Myanmar could deliver leapfrogging growth in tandem with the country's economic expansion. Myanmar has a population of over 50 million. All these create opportunity for high growth in the market," he said.
Myanmar's Planning and Finance Ministry approved a joint venture application of CB Insurance and Thai Life on July 31 and the joint venture deal is expected to be completed by October.
There are two options for foreign life insurers to operate in Myanmar: one is the formation of a wholly owned subsidiary and another is a joint venture with local insurers.