Dai-ichi snapping up 24% of ocean life

Ocean Life Insurance said yesterday it would sell a 24-per-cent stake to Dai-ichi Mutual Life Insurance, one of Japan's top three insurers, to help strengthen competitiveness and expand its customer base.

The Thai company had been looking for foreign partners since last year to make its management and services more professional.

Since last year, the company has announced two big changes - the recruitment of Dayana Bunnag from Kasikorn Asset Management as managing director and the move to take on a foreign partner.

Ocean Life chairman Kirati Assakul said the company was 100 per cent owned by the Assakul family. It has paid up capital of Bt160 million.

"With Japanese partners, the company hopes to be upgrade and become a top-five Thai insurer within the next five years," Kirati said, adding that the two companies will share their technology and experience.

At the moment the company is ranked the seventh-biggest insurance company in Thailand.

Dai-ichi's total premiums reached Bt1.5 trillion last year, making it the second biggest in Japan.

Previously, Dai-ichi Mutual Life Insurance had cooperated on marketing with the Thai insurer, focusing on group insurance.

Kirati said Ocean Life's premiums increased 9 per cent in first five months of the year, while Thailand's overall insurance business grew 13 per cent.

The two partners will jointly expand Ocean Life's customer base, with more focus on people upcountry.

Particularly, the Japanese partner will attract more customers who work in Japanese companies in Thailand.

A Japanese manager of Dai-ichi said Ocean Life had more than 60 years' experience in insurance in Thailand.

In addition, the Thai company has a wide customer base, which will support business growth in the future.

"We will apply our strength on both whole-life and health insurance products to serve customer demand," he said.

Dai-ichi Mutual Life Insurance plans to expand in the Asia-Pacific, including in Thailand, Vietnam and India.