German multinational financial services company Allianz has acquired a 19.21 percent stake in Sri Ayudhya Capital, an insurance company in Thailand. Allianz’s strategic goal by acquiring a stake in Sri Ayudhya Capital is to become the company’s largest shareholder. Sri Ayudhya Capital informed the Stock Exchange of Thailand that Allianz proposed to buy 56.93 million shares, totalling $95 million.

Under the terms of the agreement, Sri Ayudhya Capital will be renamed as Allianz Ayudhya Capital and the company’s arm Sri Ayudhya General Insurance will be renamed Allianz Ayudhya General Insurance, an Asian news media report said.

Allianz Deputy Regional CEO Asia Pacific Solmaz Altin said, “The closer relationship between both businesses will increase collaboration and expertise, and deliver an improved customer proposition in the country.  These moves reflect the strategic efforts we are making across Asia and we look ahead with confidence.”

Smith explained that the partnership is an advantage for local customers and will strengthen Allianz’s future growth in Thailand. “Today is a game changer for local customers and the insurance sector in Thailand.”

However, the key challenge in the country’s insurance market is to make ‘significant investments in digital technology’ in order to support expectations. The consolidation of both companies will result in heavy investments in both Life and general insurance, and the  global Allianz technological expertise will encourage Allianz Ayudhya to introduce the latest technologies in Thailand.

Bryan Smith has been appointed as the new President and CEO of Allianz Ayudhya Capital and Country Manager of Allianz Thailand.