Tokio Marine Holdings Inc. unit Tokio Marine & Nichido Fire Insurance Co. Ltd. will purchase Insurance Australia Group Ltd.'s 98.6% stake in Thai auto insurer Safety Insurance Public Co. Ltd. for approximately ¥40 billion, The Nikkei reported.
The deal also includes a majority stake in Indonesian insurer PT Asuransi Parolamas, according to the report. The transaction may close as early as 2018, pending regulatory approval in concerned countries.
Safety Insurance operates a nationwide network of approximately 5,000 agencies. Tokio Marine wants to merge the company with its Thai unit, which could elevate the combined entity to third place overall and first among foreign-owned nonlife insurers.
The news comes on the heels of reports that Insurance Australia is looking to divest from four Southeast Asian markets.
As of June 18, US$1 was equivalent to ¥110.45.