Zurich to acquire 80% stake in Indonesia’s Adira for $414m

Zurich Insurance is acquiring an 80% stake in Indonesia’s Adira Insurance from PT Bank Danamon Indonesia and a minority investor for about $414m.

“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,” Zurich’s Asia Pacific head, Jack Howell, said in a statement.

The deal should be finalised in the next six months and 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.

The total transaction amounts to approximately $414m, with potential future incremental payments subject to business performance. With this acquisition, the Swiss group will become the largest foreign P&C insurer in Indonesia.

“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.

Established in 1996, Adira Insurance generated gross written premiums of $158m last year. Adira is said to have a leading market position in motor and takaful insurance – sharia compliant – in Indonesia.

ABOUT THE AUTHOR
Pedro Gonçalves
Pedro Gonçalves is Financial Correspondent at International Investment.

Read more from Pedro Gonçalves

preloader
Close Window
View the Magazine





You need to fill all required fields!