, Thailand
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Allianz Ayudhya General maintains strong capitalisation post-merger

The merger is expected to drive premium growth over the medium term.

Allianz Ayudhya General Insurance's (AAGI) balance sheet strength is supported by its strongest level of risk-adjusted capitalisation at the end of 2023, as measured by AM Best’s Capital Adequacy Ratio (BCAR), and is expected to be at a very strong level in the medium term. 

AAGI’s business profile is limited, operating solely in Thailand, where it ranks as the ninth largest general insurer with a 3.5% market share in 2023. 

Its underwriting portfolio is diversified across lines of business and distribution channels, but its geographic reach is restricted to Thailand. 

The 2023 merger with Aetna Health helped AAGI expand in the health insurance market and is expected to drive premium growth over the medium term, particularly through strengthened distribution channels and the development of health and commercial products.

The company has strong financial flexibility through its parent, Allianz Ayudhya Capital Public Company. 

AAGI follows a conservative investment strategy, with most of its portfolio in cash, deposits, and high-quality bonds. While the company relies moderately on reinsurance for underwriting capacity and managing catastrophe risks, this is mitigated by the high credit quality of its reinsurance partners.

AAGI’s operating performance is considered adequate. After its merger with Aetna Health Insurance (Thailand) in March 2023, AAGI saw an improvement in underwriting performance due to increased scale, cost management initiatives, and a lower acquisition expense ratio. This offset a higher loss ratio from its motor insurance business. 

Stable investment income, mainly from interest, also supported profitability. AAGI is expected to maintain adequate performance as it grows, with a focus on prudent underwriting and pricing.

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