Canada-based Fairfax Financial Holdings Ltd, a major shareholder of Falcon Insurance Plc, is exploring additional investment opportunities in Thailand after the government removed a 50% foreign shareholding restriction for local insurance companies.
The Canadian firm is looking for the opportunities in both Falcon Insurance and other insurance firms, said chief executive Sopa Kanjanarintr.
The authorities have amended the Insurance Business Act, allowing foreigners to hold the entire stake in local insurance firms, up from 50% earlier. Foreign investors in the past were, however, permitted to own more than the 50% ceiling in Thai insurers on a case-by-case basis.
Fairfax Group owns a 60% stake in Falcon. The remaining 40% is held by Navakij Insurance Plc.
Falcon has operated in Thailand for over a decade, and it premium growth averages 35% per year.
"With Fairfax's financial strengths, business expertise and global networks, it will support the company's growth, with the additional investment strengthening our operations in the long-term," she said.
The company is mainly focusing on organisational transformation this year to prepare for business expansion and changing customer demand in the digital age. Its organisation and business strategy have placed an emphasis on digital technology over the past several years in order to improve efficiency and slim down operating costs.
The company's transformation plan covers all main operational areas, particularly workflow systems and electronic documents. This will improve management of the underwriting process, e-policy delivery, e-payment systems and electronic admin systems.
The company this year has set its total IT investment budget at 25 million baht after splashing out 60 million over the past several years.
Falcon targets total premiums of 2 billion baht this year -- a 15% growth from last year.
Property insurance is forecast to be the company's key growth contributor.