Zurich makes $0.4bn Adira acquisition, becomes largest foreign P&C insurer in Indonesia
Zurich Insurance Group is acquiring 80 percent of PT Asuransi Adira Dinamika (Adira Insurance), a property and casualty (P&C) insurer in Indonesia, from PT Bank Danamon Indonesia and a minority investor.
The total consideration amounts to IDR 6.15 trillion (approximately $414 million) with potential future incremental payments subject to business performance.
The transaction, which is expected to be completed within the next six months, positions Zurich to become the largest foreign P&C insurer in Indonesia.
Established in 1996, Adira Insurance generated gross written premiums of $158 million in 2017. Adira is said to have a leading market position in motor and takaful insurance in Indonesia.
The deal includes two separate long-term strategic cooperation agreements with Bank Danamon, Indonesia’s fifth-largest bank by market capitalization, and with Adira Finance, the country’s second-largest motorcycle and auto financing solutions provider.
"Indonesia is one of the world’s most attractive insurance markets. It is Southeast Asia’s largest economy with a strong growth trajectory and a rapidly expanding middle class. These factors, coupled with low levels of insurance penetration, present significant upside potential for the insurance market," Zurich said in a statement.
Jack Howell, Zurich’s chief executive officer for Asia Pacific, commented: “Zurich has earmarked Asia Pacific to be a major engine of growth for the group, and Indonesia is a key market for us. Today’s transaction demonstrates our commitment to Indonesia and is an excellent opportunity to expand our regional business, enabling more customers to fulfil their insurance needs.”
“We are excited to join forces with Bank Danamon and Adira Finance. Both are well-established brands and have an extensive distribution network. Together with Zurich’s international expertise, best-in-class underwriting and risk management capabilities, we are confident in the long-term success of the business,” Howell added.
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