Zurich Insurance Group (Zurich) has announced the acquisition of a leading Indonesian bancassurer which makes the firm the largest international property and casualty (P&C) insurer in Indonesia.
The Swiss insurance group has acquired 80% of PT Asuransi Adira Dinamika (Adira Insurance). The business was acquired from PT Bank Danamon Indonesia (Bank Danamon) and a minority stakeholder.
Adira Insurance is among the top 10 P&C insurers in Indonesia. It generated gross written premiums of USD 170.4 million in 2018 and has leading positions in Indonesia’s motor and takaful insurance markets. Bank Danamon will continue to hold a stake in Adira Insurance close to 20%.
The transaction includes long-term distribution agreements with Bank Danamon, Indonesia’s fifth-largest bank by market capitalisation, and Adira Finance, the country’s second-largest provider of motorcycle and car financing solutions. Zurich believes the deal will provide greater access to Indonesia’s market of over 260 million people.
“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.”