Allianz and Sri Ayudhya Capital Plc (AYUD) yesterday announced a complete expansion of their strategic partnership in Thailand.
The partnership will ensure a stronger insurance franchise focused on meeting the diverse and growing protection needs of local customers and enhancing the Allianz proposition in the region. The transaction will result in the combining of Allianz General Insurance (AZTH) and Sri Ayudhya General Insurance (SAGI) in order to form a larger life, and property and casualty (P&C) company well-positioned for future growth and innovation. Key insurance-related entities will also fall under the Allianz Ayudhya brand for enhancing local market presence and delivering a consistent experience for customers. Allianz SE has also become the largest shareholder of AYUD.
“Thailand has consistently been a long-term growth market for both life, and property and casualty. The key for both will be the ability to invest in digital innovation in customer service, partner support and direct sales approaches,” said Bryan Smith, Allianz Thailand country manager and president and CEO of Allianz Ayudhya Capital Plc and Allianz Ayudhya Assurance Plc.
The deepened partnership across both life and general insurance businesses will increase investment and innovation locally and ensure the partnership is well-placed to accelerate growth and deliver increased value for customers in Thailand, he said.
“The partnership will lead to many key benefits, including a stronger insurance franchise; extended distribution network for life and P&C; an ability to build a diversified and resilient portfolio; leveraging economies of scale; and enabling significant digital investment,” said Smith.
As part of the transaction, AYUD will be renamed Allianz Ayudhya Capital Plc. It continues to be listed on the Stock Exchange of Thailand under the ticker AYUD. Further, Sri Ayudhya General Insurance (SAGI) will be renamed Allianz Ayudhya General Insurance Plc.
Veraphan Teepsuwan remains chairman of Allianz Ayudhya Capital Plc. Bryan Smith has assumed the role of president and CEO of Allianz Ayudhya Capital, and the newly created position of country manager, Allianz Thailand, overseeing the overall business in Thailand. He remains the president and CEO of Allianz Ayudhya Assurance Plc, the life insurance business. Lars Heibutzki has been appointed as president and CEO of Allianz Ayudhya General Insurance Plc.
Smith said that in Thailand, Allianz Ayudhya was looking to become the protection leader for life and health; driving digital innovation to support customers and partners across all one Allianz Ayudhya companies, and to create a unique value proposition by providing a one-stop shop for all customers in Thailand.
"One of the key challenges in the market going forward will be the need to make significant investments in digital technologies to support the changing needs of customers and the business expectations of partners. In this regard the industry needs significant capital and technological expertise. The consolidation of One Allianz Ayudhya in Thailand enables Allianz Ayudhya to invest heavily into both Life and P&C; and the global Allianz technological expertise enables Allianz Ayudhya to bring the very latest technologies to Thailand," he said.