THAI INSURER TO GET CASH INJECTION FROM PHILIPPINES

Thailand-based mainly motor insurer Thanasin has obtained a commitment from Philippines-based Paramount Life & General to invest up to 300m baht in the company, reports the Bangkok Post . Thanasin managing director Surasak Kiatkumjornyos said that Paramount would inject 150m baht between August and October, after which it would seek approval from its own shareholders to invest a further 150m baht. Composite insurer Paramount is owned mainly by the Go family, the Chu family from Cebu and the Tahija family in Indonesia. The World Bank investment arm IFC has a 20% stake. Paramount CEO Patrick Go said that “we are well aware of the present financial difficulty of the Thai firm ... Thanasin’s middle size well-matches Paramount’s expansion strategy”. He said Paramount would be looking to take a 70% stake in Thanasin, via a holding company established in Thailand. Thanasin, previously known as Patchara Insurance, was warned last year by the Insurance Department to improve its financial position. Last year Thanasin recorded premiums of 775.9m baht, up from 633.0m baht the year before.