Boosting its presence in Thailand, Canadian reinsurer and insurer Fairfax Financial Holdings has acquired a 25% stake in Thai Re, Thailand’s largest domestic reinsurer. The deal, worth C$70m ($69m), will make Fairfax by far Thai Re’s largest shareholder.
Thai Re’s share price has fallen significantly, more than halving since September 2011 and clearly providing an attractive entry level for Fairfax which has a history of astute investing.
Founded in 1979, Thai Re is active in the general and life segments of Thailand’s reinsurance market. In 2010, Thai Re reported net written premium income of THB3.7bn ($115m) of which 16% was derived from life reinsurance.
Thai Re becomes Fairfax’s second interest in Thailand, the other being general insurer Falcon, a joint venture with Thai insurer Navakij Insurance.
In the wake of the recent floods in Thailand, Fairfax, which has interests spanning general and life insurance and reinsurance, is active in 14 countries through 18 wholly- or partly-owned companies.
Fairfax reported total revenue of C$6.2bn in 2010 and a net profit of C$469m.