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Member, Beacon International Group, Ltd.
BANGKOK—Fairfax Financial Holdings Ltd. has entered into an agreement to acquire about 25% of the issued and outstanding stock of Thai Reinsurance Public Co. Ltd. in a deal worth about $70 million.
The proposal is subject to the approval of Bangkok-based Thai Re’s shareholders, the successful conclusion of Thai Re's previously announced rights offering and receiving the requisite regulatory approvals, Toronto-based Fairfax announced Thursday.
If all the requirements are met, the transaction is expected to close in the second quarter of 2012.
“We are pleased to be partnering with the leading reinsurer in Thailand,” Fairfax Chairman and CEO Prem Watsa said in a statement.
Earlier this month, the chairman and CEO of Thai Re said that although the reinsurer had not been able to assess its full losses from the months of flooding that devastated Thailand last year, the Thai property market accounts for less than 5% of its book of business.