Zurich Insurance Group has completed the acquisition of 80% of PT Asuransi Adira Dinamika (Adira Insurance), thereby becoming the largest property and casualty (P&C) insurer in Indonesia.
Adira Insurance is among the top 10 P&C insurers in Indonesia.
It generated gross written premiums of US $170.4 million in 2018 and has leading positions in Indonesia’s motor and takaful insurance markets.
Zurich acquired the business from Bank Danamon, who will continue to hold a stake in Adira Insurance close to 20%, as well as a minority stakeholder.
The transaction also includes long-term distribution agreements with Bank Danamon, Indonesia’s fifth-largest bank by market capitalization, and Adira Finance, the country’s second-largest provider of motorcycle and car financing solutions.
Zurich said it believes the agreements will help to expand its global distribution network.
“Indonesia’s growing economy, rapidly expanding middle class and low insurance penetration present great opportunities,” said Jack Howell, CEO of Asia Pacific and member of Zurich’s Executive Committee.
“The acquisition of Adira Insurance is a good illustration of our strategy of achieving positions of scale in attractive growth markets and strengthening our distribution channels.”