Asia

Japan investor buys Thai insurer

The Japan based investment group, Asia Partnership Fund (APF), has acquired Advanced Insurance Company of Thailand for Baht200.0mn (US$5.9mn). The purchase represents Asia Partnership Fund’s first direct investment in the Thai insurance market. Prior to the deal, APF’s investment in Thailand had been strictly on a portfolio basis. APF chairman Mitsuji Konoshita said that the fund had invested more than $100.0mn in the Thai debt and equity markets. He did not say how much of this was in the insurance sector. However, he noted that APF had put aside around $30.0mn to invest directly in the Thai insurance sector in the future. Mr Konoshita was remarkably frank about the hazards of investing in the Thai insurance market. He said that after negotiations with several parties, Advance Insurance Company presented the fewest problems. “The financial statement was clean and transparent,” he said. However, the company (now renamed APF International) was severely under capitalised. Following the takeover, APF Group raised the company’s registered capital by Baht157.0mn to Baht477.0mn to meet regulatory capital requirements. Mr Konoshita said another capital increase program of up to Baht300.0mn is planned before the end of 2008. Worosak Kriangkomol, a former managing director of Liberty Insurance in Thailand, was appointed chief executive of APF International.