Fairfax Financial Holdings Ltd (TSX:FFH) Thursday announced it has entered into an agreement to acquire 25% of Thai reinsurer, Thai Reinsurance Public Company Ltd., for approximately US$70 million.
As part of the purchase, Fairfax will have the right to nominate two members to the Thai Re board of directors and will also assist Thai Re with its investment portfolio.
Subject to the approval of Thai Re shareholders, the successful conclusion of Thai Re’s previously announced rights offering and the receipt of all regulatory approvals, the deal is expected to close in the second quarter of 2012.
“We are pleased to be partnering with the leading reinsurer in Thailand,” said Prem Watsa, chairman and CEO of Fairfax, in a release. “Surachai Sirivallop, CEO of Thai Re, has an outstanding track record of underwriting profitability since he began managing the company 22 years ago.”
Thai Re is a professional reinsurer with over Baht 2 billion (C$64 million) in equity providing reinsurance coverage for property, casualty, engineering, marine, and life customers. Thai Re also offers risk management consulting, technical assistance, marketing support, education and information services. The company is headquartered in Bangkok and has been operating in the reinsurance market since 1979.