The Japanese trading house Itochu Corp. is expanding its footprint in Southeast Asia’s insurance sector with a 1 billion baht ($29 million) investment in Thaivivat Insurance, acquiring a 20% stake through newly issued shares.
The deal targets Thailand’s underdeveloped insurance market, where penetration rates lag behind developed nations. Thaivivat, currently ranked 11th among more than 40 players in Thailand’s non-life insurance sector, holds about 3% market share, primarily in auto insurance.
While Thailand’s auto market faces headwinds from cautious bank lending amid rising household debt, Thaivivat has outperformed the industry. The company reported an 11% average annual growth in underwriting volume from 2019 to 2023, nearly triple the industry’s 4% average.
The insurer’s growth stems from strategic partnerships with United Overseas Bank and Charoen Pokphand Group. Itochu, which already operates an insurance brokerage in Thailand, sees the investment complementing its existing regional portfolio, including a personal loan venture with Acom.
The transaction follows a broader trend of Japanese financial institutions expanding into Southeast Asia’s insurance market, exemplified by Sumitomo Life Insurance’s earlier acquisition of Singapore Life Holdings.
