Zurich Insurance buys 80% stake in Indonesian P&C insurer Adira Insurance
Zurich Insurance Group has completed its previously announced 80% stake acquisition in Asuransi Adira Dinamika Insurance (Adira Insurance), an Indonesian property and casualty insurer.
The Swiss insurer acquired the stake from Bank Danamon Indonesia and an undisclosed minority stakeholder in a deal worth up to IDR6.15 trillion (about $414 million at the time of signing the deal in September 2018). The consideration includes future incremental payments subject to the business performance of Adira Insurance.
With the acquisition, Zurich Insurance will become the largest multinational P&C insurer in Indonesia. Bank Danamon will own the remaining stake of about 20% in Adira Insurance.
The transaction also includes long-term agreements signed by Zurich Insurance with Bank Danamon and Adira Finance. While Bank Danamon is considered to be among the top five largest banks in Indonesia based on market capitalization, Adira Finance is one of the country’s largest motorcycle and auto financing solutions provider.
According to Zurich Insurance, the distribution agreements will strengthen its network of more than 70 distribution agreements across the globe.
Jack Howell – Zurich Insurance Asia Pacific CEO and executive committee member said: “Indonesia’s growing economy, rapidly expanding middle class and low insurance penetration present great opportunities. 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.”