Roojai Founder Nicolas Faquet
Thai insurtech company Roojai has agreed to acquire motor DirectAsia Group from US-based small business insurer Hiscox for an undisclosed sum.
The transaction is subject to customary conditions and regulatory approvals and is expected to be completed by 2023-end.
Following the acquisition, DirectAsia Thailand will be rebranded into Roojai Thailand, while DirectAsia Singapore will retain its brand.
With this acquisition, Roojai looks to substantially increase its market share with a combined portfolio of over 400,000 vehicles insured in three countries and 300,000 individuals protected with its accident and health insurance products.
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The acquisition will not impact existing policies, claims processes or customer service.
“The consolidation of the two companies into a single group will deliver synergies that will support our further expansion of the Direct Insurance model in Southeast Asia,” said Nicolas Faquet, Founder and Group CEO of Roojai.
Launched in 2016, Roojai sells motor, accident, and health insurance products on a direct-to-consumer model. It will now have operations in Thailand, Singapore, and Indonesia.
The company expanded its business into Indonesia in 2022.
Roojai claims it has 150,000 customers and has grown its premium income by 25 per cent to US$38 million.
In March this year, Roojai secured US$42 million in a financing round led by HDI International, a subsidiary of Germany’s Talanx Group, with participation from existing investor IFC. It previously raised US$20 million from Primary Group, besides a US$7 million Series A round from IFC.
DirectAsia was founded in Singapore in 2010 and launched in Thailand in 2013. Its primary business is motor insurance, which operates through several distribution channels.
In 2022, DirectAsia claims it had gross written premiums of US$52.5 million (under IFRS 4).
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