IAG has firmed its foothold in Thailand with the acquisition of a second Thai general insurer, Royal & SunAlliance (Thailand).

The company, formerly a subsidiary of the troubled UK-based Royal & SunAlliance in partnership with three local companies, generates about $35 million in annual gross written premium, which IAG CFO George Venardos says puts IAG in an optimal position to participate in the inevitable consolidation of the Thai general insurance market.

“With a population of more than 60 million and strong forecast economic prospects, we identified Thailand’s general insurance market as having solid growth potential,” he said.

IAG already has experience in that market, holding a 20% interest in leading Thai insurer Thai Safety Insurance.

The acquisition, which is subject to regulatory approval, will be funded using surplus capital. The Thai insurer’s existing management will continue to run the business with review and input from IAG.