Indonesia: Zurich to acquire 80% stake in Indonesia's Adira Insurance
Source: Middle East Insurance Review | Nov 2018
Zurich Insurance is acquiring an 80% stake in Indonesia’s Adira Insurance from PT Bank Danamon Indonesia and a minority investor for about $414m, the Swiss group has announced.
Adira Insurance is a major player in motor and takaful products and it is a top 10 P&C insurer in Indonesia.
The transaction includes two separate long-term strategic cooperation agreements with Bank Danamon, Indonesia’s fifth-largest bank by market capitalisation, and with Adira Finance, the country’s second-largest motorcycle and auto financing solutions provider.
“Zurich has earmarked Asia Pacific to be a major engine of growth for the Group, and Indonesia is a key market for us,” said the company’s CEO for Asia Pacific Jack Howell.
The total consideration amounts to about $414m with potential future incremental payments subject to business performance. With this transaction, Zurich will become the largest foreign P&C insurer in Indonesia.
Established in 1996, Adira Insurance generated GWP of $158m in 2017. This was driven by a diversified P&C product offering and strong distribution capabilities.
The parties expect the transaction, which is subject to regulatory approvals and other customary closing conditions, to be completed within the next six months. Following completion, Zurich will hold an 80% stake in Adira Insurance, and Bank Danamon will hold the remaining 20%. M