Zurich Insurance Group has acquired 80% of Indonesia’s Adira Insurance from Bank Danamon and a minority shareholder in a transaction worth approximately $414m (£314m, €352m).
The transaction, which equates locally to IDR6.15trn, puts Zurich in the top 10 property and casualty insurers in the country. Zurich will hold an 80% stake in Adira while Bank Danamon will retain 20%.
The acquisition includes two separate long-term cooperation agreements with Bank Danamon, Indonesia’s fifth largest bank and major holder of Rolls Royce shares, and Adira Finance, the second largest provider of automotive finance including for motor-cycles.
Zurich says Adira Finance also has a significant share of takaful (pooled Islamic) insurance.
Jack Howell, Zurich’s chief executive for Asia Pacific, says: “Zurich has earmarked Asia Pacific to be a major engine of growth for the group, and Indonesia is a key market for us.
“This 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.”
Adira Insurance was established in 1996 and generated gross written premiums of $158m in 2017.
The deal, which is subject to regulatory approvals and other customary closing conditions, should complete within the next six months.