IAG has grown its Thai market share through the successful acquisition of the country’s seventh largest general insurer, Safety Insurance.

Its Thai investment holding company, NHCT Limited, has acquired 98% of Safety Insurance. It had held an interest of 21.6% since October 1998.

In February IAG CEO Michael Hawker oversaw the takeover of an additional 16.7% stake in the company, triggering the mandatory tender of 77 baht ($2.77) a share to all Safety Insurance shareholders.

An IAG spokesman says the Sydney-based company will continue to work with Safety Insurance management to ensure future business growth.

“The existing management team will stay in place, with input from IAG,” he said. “We have worked with the team for many years now and can see the results they are producing; their expertise and relationships are strong.”

IAG’s business interests in Thailand will ultimately report to Justin Breheny, the company’s CEO Asia. At this point there are no short-term plans to consolidate Safety Insurance and NZI Thailand, which is also owned by IAG.

“We intend the two businesses will continue to maintain separate licences, separate management teams and separate boards,” the spokesman said. “Similarly, we do not have any current intentions to re-brand Safety, as we believe it is already a well recognised and respected brand in the Thai market.”

Last year Safety Insurance posted a net profit of 139.55 million baht ($5 million).

In addition to the recent acquisition, Standard & Poor’s (S&P) has assigned AIG with a new credit rating of AA- as the company faces moderate premium growth for the year ahead.

While the AA- rating is a bonus for IAG, the rating is still one notch below the AA ratings for its operating companies such as CGU Insurance and Insurance Manufacturers Australia.

S&P says the rating rise reflects IAG’s role as the group’s ultimate holding company, its access to a range of dividend streams from its Australian subsidiaries, and a largely unregulated revenue stream from its sizeable operation in New Zealand.