Zurich to acquire Indonesia’s Adira Insurance

September 28 2018 by InsuranceAsia News Staff

Zurich has agreed a deal to buy Adira Insurance for Rp6.15 trillion (US$414 million), making it the largest foreign P&C insurer in Indonesia.

Established in 1996, Adira generated gross written premiums of U$158 million in 2017, driven by a diversified property-and-casualty product offering and strong distribution capabilities.

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 Jack Howell, Zurich’s chief executive officer for Asia Pacific. “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 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 a 20% stake.

MORE FROM: M&A