Prudential plc has agreed to buy the insurance unit of Thailand\'s Thanachart Bank for 368 million pounds (US$590 million) in cash, turning up the heat on rival AIA Group Ltd in the fast-growing Southeast Asian market.
The British insurer\'s acquisition, which will double its market share in Thailand, is its first major attempt to buy an Asian company since chief executive Tidjane Thiam aborted a US$35 billion bid in 2010 for AIA, the former Asian unit of American International Group Inc.
Since then, Southeast Asia has emerged as a battleground for AIA and Prudential, the region\'s two dominant insurers. Prudential recently announced plans to open an office in Cambodia and AIA last month said it had agreed to buy ING\'s Malaysian insurance unit for US$1.73 billion.
Premiums in six Southeast Asian countries are expected to rise an average of 7.9 per cent next year, according to a report by Swiss Re, more than double the global life insurance average.
The British insurer\'s acquisition, which will double its market share in Thailand, is its first major attempt to buy an Asian company since chief executive Tidjane Thiam aborted a US$35 billion bid in 2010 for AIA, the former Asian unit of American International Group Inc.
Since then, Southeast Asia has emerged as a battleground for AIA and Prudential, the region\'s two dominant insurers. Prudential recently announced plans to open an office in Cambodia and AIA last month said it had agreed to buy ING\'s Malaysian insurance unit for US$1.73 billion.
Premiums in six Southeast Asian countries are expected to rise an average of 7.9 per cent next year, according to a report by Swiss Re, more than double the global life insurance average.