Starr Insurance Companies has announced an agreement with FPG Insurance Holdings Limited (HK) and local Thai shareholders to purchase FPG Insurance Public Company Limited, a Thai non-life insurance company, together with local Thai parties.

Starr said its investment will be held by its Bermudian-based insurance company, Starr Insurance & Reinsurance Limited.

The transaction is expected to close in the second quarter of 2022, subject to certain customary closing conditions, including any necessary regulatory approvals.

Maurice R Greenberg, Starr’s chairman and CEO, said: “Thailand is an important, fast-growing insurance market — one of the cornerstones of the South-East Asia economy.

“Asia is both commercially and culturally important to Starr, as we trace our roots to an American-owned company founded in Shanghai more than 100 years ago.

“We look forward to serving the needs of local Thai companies and consumers through this new insurance capability.”

David Zuellig, FPG regional chairman, said: “This transaction reflects the standing of our franchises and is the product of the hard work, persistence and determination of the FPG Thailand team despite challenging market conditions.

“The team is excited and ready to work with Starr in bringing the company to the next level.”

Starr said it expects to strengthen local product offerings with tailored commercial insurance and accident & health products and plans to further maximise its growth by recruiting and developing local Thai insurance talent.

Previously, Starr supported the Thai insurance market primarily through its provision of reinsurance products, including technical risks, casualty, marine, and A&H products.

Gerard Pennefather, from Huntington, strategic advisers to FPG, said: “This is a fantastic outcome for both Starr and FPG. We believe Starr is the ideal home for FPG Thailand to build scale, and expand capabilities and distribution, whilst bringing innovation to the market.”

According to a recent report by rating agency AM Best, Starr said, in 2021 Thailand’s non-life insurance market was estimated to be THB 253 billion ($8.3 billion) in terms of direct premium written.

The operation’s headquarters are expected to remain in Bangkok.