Thai Life Insurance has struck a deal to take a 35% stake in Citizen Business (CB) Insurance, becoming the first Asean outsider 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 proved to be successful in Thailand," Chai Chaiyawan, president of Thai Life Insurance, said in a release. 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, Mr Chai 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, he said.
The company will promote savings and investment-linked insurance products, which are in demand.
"The life insurance business in Myanmar could deliver leapfrogging growth in tandem with the country's economic expansion," Mr Chai said. "Myanmar has a population of over 50 million. All these create opportunity for high growth in the market."
Myanmar's Planning and Finance Ministry approved the joint venture application of CB Insurance and Thai Life on July 31. The 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 the other is a joint venture with local insurers.