Zurich Insurance has agreed to acquire a 80% stake in Indonesian property and casualty (P&C;) insurer Asuransi Adira Dinamika (Adira Insurance) for IDR6.15tn (about $414m).
The Swiss insurance giant will buy the stake in Adira Insurance from PT Bank Danamon Indonesia (Bank Danamon) and an undisclosed minority investor.
The transaction, which will allow Zurich to become the largest foreign P&C insurer in Indonesia, includes potential future incremental payments subject to business performance.
Bank Danamon will retain a stake of 20% following the completion of the deal.
Zurich Insurance Asia Pacific CEO Jack Howell said: “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 fulfill their insurance needs.”
The transaction comprises long-term agreements made by Zurich Insurance with Bank Danamon and Indonesian motorcycle and auto financing solutions provider Adira Finance.
Founded in 1996, Adira Insurance had registered gross written premiums of $158m in 2017, which were driven by a diversified P&C product offering and solid distribution capabilities, said the Swiss insurance major.
It also added that Adira Insurance is a major player in Indonesia for motor and Takaful insurance.
Based on receipt of regulatory approvals and closing of other customary closing conditions, the transaction is anticipated to be completed within the coming six months.
Earlier this year, Zurich Insurance agreed to acquire 19 providers of traveler assistance in Latin America in a move to accelerate growth of Cover-More Group, the company’s specialist global travel insurance and assistance solutions business.
Prior to that, in February, Zurich Insurance signed a deal to acquire the Latin American operations of Australian insurer QBE Insurance Group for $409m.
In December 2017, the Swiss insurance giant signed an A$2.85bn ($2.14bn) deal to acquire the Australian life insurance businesses of ANZ.
Zurich provides a range of property and casualty, and life insurance products and services in over 210 countries and territories.