INSURANCE / FOREIGN SHAREHOLDING

AYUD stake bought

The German financial services group Allianz has acquired another 15.3 million shares or 6.12% of SET-listed Ayudhya Insurance (AYUD) for an undisclosed amount from Myriad Materials Co, raising its stake in the local insurer to 16.84%. Adisorn Tantianankul, the president of Ayudhya Insurance, said the purchase was purely for investment purposes and no policy or management changes would result.

Allianz entered Thailand six years ago by acquiring a stake in Ayudhya CMG Life, the country's third largest life insurer. The name was later changed to Ayudhya Allianz C.P. Life (AACP).

The German firm has also co-ventured with the CP Group in Allianz C.P. General Insurance Co, which generated last year premiums of 1.1 billion baht, a rise from 977.57 million in 2005.

Allianz last year purchased 10% of Ayudhya Insurance, the country's 14th-ranked non-life insurer. Ayudhya Insurance reported premiums last year of 1.61 billion baht, up 139 million baht from a year earlier, with net profit worth of 360.48 million baht, up from 214.78 million in 2005.

The company expects premiums to grow only 5% this year given the unfavourable economic and political prospects.

Bangkok Post

Last Updated : Saturday April 21, 2007