ACE Limited (ACE) said it has agreed to purchase a 60.9 percent stake in The Siam Commercial Samaggi Insurance PCL, a general insurance company in Thailand, from Siam Commercial Bank.

Established in 1947 and listed on the stock exchange of Thailand, Bangkok-based Siam Commercial Samaggi Insurance is a writer of auto, small commercial and personal accident insurance and distributes its products through both Siam Commercial Bank’s branches and independent agents through its own branch network. In 2012, the insurer had approximately $138 million in gross premiums written.

On closing of this transaction, in compliance with Thai regulations, ACE and its local Thai partner will make a mandatory tender offer for the remaining 39.1% of Siam Commercial Samaggi Insurance. The total transaction is valued at approximately $185 million.

“Thailand is the second-largest economy in Southeast Asia and at the heart of Indochina – a region that includes Vietnam and Myanmar. ACE has been operating there for many years and has built a strong local insurance business focused on industrial commercial property and casualty, accident and health, and life,” said Evan G. Greenberg, chairman and CEO, ACE Limited.

The transaction is expected to be completed in the second quarter of 2014 and is subject to due diligence by ACE and customary closing conditions including Siam Commercial Bank shareholder approval.