Allianz and Sri Ayudhya Capital to Deepen Insurance Cooperation in Thailand

Bangkok/ Singapore, 23rd November 2017 -- Allianz and Sri Ayudhya Capital PCL (“"AYUD"”) hereby announced both companies will enter into strategic transactions to deepen their partnership across both life and general insurance businesses, effectively creating an enhanced insurance franchise with expanded scale and competitiveness in Thailand.

Under the terms of the agreements, both parties will execute on the following transactions:

  • 100% of the business of Allianz General Insurance will be transferred to Sri Ayudhya General Insurance, a subsidiary of AYUD, and operated as a single entity
  • Transaction brings together two complementary general insurance businesses with an expanded customer base, service capabilities and distribution channels. The enhanced scale and competitiveness will create a key insurance player in fast-growing Thai general insurance market.
  • Allianz and its affiliate to transfer 11.80% of life insurance company Allianz Ayudhya Assurance (AZAY) to AYUD, thereby increasing AYUD’s stake in AZAY to 32.0%. Consequently, Allianz and its affiliate will receive new shares from AYUD, and effectively become AYUD’s largest shareholder

These transactions pave the way for Allianz and AYUD to create a stronger insurance franchise in Thailand, where the broader portfolio and scale will support and accelerate growth and innovation, positioning the partnership for further growth and customer success.

In view of the extended partnership and business synergies, Sri Ayudhya Capital PCL will be renamed "“Allianz Ayudhya Capital PCL”" upon closing of the transaction. It will continue to trade on the Stock Exchange of Thailand under the "“AYUD"” ticker.

George Sartorel, Allianz’s Regional CEO for Asia Pacific, said: “"Allianz and AYUD both have long track records of excellence and commitment to helping meet the protection needs of our customers. Today’s announcement sees us taking this partnership further and across the full footprint of our businesses in Thailand, to create a stronger, larger and more resilient insurance franchise. With the expanded ability to invest and innovate locally, we are well-placed to accelerate growth and value creation for customers, employees, associates and investors in Thailand. We look forward to working more closely with Sri Ayudhya to reach new levels of success together.”"

Veraphan Teepsuwan, Chairman of Sri Ayudhya Capital PCL, said: “"We are excited to expand the partnership with Allianz, and work with them to drive brighter growth prospects for AYUD. I’m confident this creates significant long-term value for our shareholders. Pairing our established business with Allianz’s insurance and digital expertise strengthens our franchise, allowing us to deliver even more for the communities and customers we serve.”

Allianz has a long heritage in offering life and health insurance to Thai customers through Allianz Ayudhya Assurance; and in the growing general insurance market through Allianz General Insurance. Sri Ayudhya Capital PCL is a Thailand-listed investment holding company, whose principal holdings include a 99.9% stake in subsidiary Sri Ayudhya General Insurance PCL."

Subject to relevant regulatory and shareholder approvals, these transactions are expected to complete in 2018.

Bangkok/ Singapore, 19th January 2018 -- Allianz announced today the outcome of Sri Ayudhya Capital PCL’s (“AYUD”) extraordinary shareholder meeting regarding the proposed transaction between both companies.

A required majority vote of at least 75% of shareholders attending and eligible to vote was not achieved to approve the proposed transaction.

We thank all AYUD shareholders for giving the transaction due consideration, and look forward to the continued partnership with AYUD in Thailand.

Allianz remains positive about Thailand’s long term market potential, and will continue to grow our insurance business franchise in the market, while remaining open to opportunities as they arise.

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