On Monday, the Lamsam family, a major shareholder of both Muang Thai Insurance and Phatra Insurance, decided to merge the two insurers.

The move was not because of a family feud, even though family members will have to discuss further about who will head the new company.

Outsiders view the merger as shrewd business sense because it will combine the two businesses, which are similar, although their strengths lie in different areas.

As the decision was made only last Friday, many details are yet to come out.

For instance, the executives haven't decided which colour they will use for the new company's logo.

The merger is in the format of "A + B = C", meaning that it will create a new business identity. Normally, the bigger company in the merger deal will have a dominant role in the new company.

But both companies' performances are on equal terms. Both have been around for more than 50 years and their revenues are comparable.

In fact, there are many small details to be accounted for in the merger. For instance, both companies have established brand loyalty through their logo colours.

Muang Thai Insurance's logo is blue while Phatra's is green.

Phatra Insurance's president is Kritaya Lamsam. Muang Thai Insurance's president is Nualphan Lamsam. Both are women and cousins. They both showed up at the press conference together.

However, speculation ran wild that the merger may be a timely tactic ahead of the general election due later this year.

Nualphan has shown an interest in politics. She is now assisting Bangkok Governor Apirak Kosayodhin, paving the way for a future career with the Democrat Party.

Nualphan refused to reveal her future plans to reporters. But one thing is clear now. Her options are open.

piyarat@nationgroup.com