Zurich Insurance Group has announced an agreement to acquire 80% of Indonesian property and casualty insurer PT Asuransi Adira Dinamika from PT Bank Danamon Indonesia and a minority investor for $414 million (IDR 6.15 trillion), a deal that will make Zurich the largest foreign P&C insurer in the country.
The transaction is reported to include two separate long-term strategic cooperation agreements, and potential future incremental payments subject to business performance, 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,” commented 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.”
“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,” added Howell.
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.