AIA invests $328 M in Thailand

MANILA, Philippines - The AIA Group is investing 10.5 billion bahts (approximately $328 million) in Thailand through two large-scale real estate projects.

 The first real estate investment – the AIA Capital Center – is the company’s largest real estate investment in Thailand to date: a 35-story commercial office complex in Bangkok, the building will be located next to the new Stock Exchange of Thailand and will form an integral part of Thailand’s first financial hub.

The AIA Capital Center is scheduled for completion by the end of 2014.

The second investment is another office complex, named AIA Sathorn Tower, scheduled for completion in 2015 in Bangkok’s Sathorn district.  

Both office complexes will be constructed using cutting-edge green design technology to promote a more energy efficient and eco-friendly future.  

“We are very proud to have been in Thailand for 73 successful years. We have enormous faith and confidence in Thailand’s future and the strength of its people,” said Mark Tucker, AIA’s Group chief executive and president. “Together these two real estate investments reflect our on-going confidence in Thailand’s long-term growth.” 

AIA Thailand chief executive officer Ron Van Oijen and Tucker held a press conference in Bangkok last week prior to AIA’s annual Board of Directors meeting, its first to be held outside Hong Kong since it became a publicly listed company in October 2010. AIA Thailand directly and indirectly generates over 75,000 jobs.

During the press conference, AIA Thailand also outlined its focus on raising awareness about the Protection Gap. Recent studies conducted by AIA Thailand show that 76 percent of all Thais – more than 48 million people – do not have life insurance. It is becoming ever more important that Thais arrange protection cover against unexpected medical costs. AIA Thailand, as the market leader with a depth of experience in these classes across the region, aims to make a material impact.  

“Our studies have shown that underinsurance is a significant issue in Thailand. Thai consumers need to be more aware of the gap between the protection they have, and the protection they need to ensure they and their families are fully financially protected against life’s uncertainties, in addition to building up regular savings towards the more predictable financial need for retirement income,” Van Oijen said.

AIA Thailand has been operating since 1938 and is a member of the AIA Group. AIA Thailand serves more than five million Thais with life insurance, investment-linked products, saving and retirement solutions, accident and health solutions and corporate solutions including group insurance, credit life insurance and provident funds.

AIA Group and its subsidiaries comprise the largest independent publicly listed pan-Asian life insurance group in the world. It has wholly-owned main operating subsidiaries or branches in 14 markets in Asia Pacific – Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines (the Philippine American Life and General Insurance Co. or Philam Life), Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau and Brunei – and a 26 percent joint venture shareholding in India. 

It is a market leader in the Asia Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of $115,782 million end May 2011.