As tech underpins insurance systems around the globe via smartphone, email, platforms and app-based portals, consolidation is likely to increase. Here’s some news from Zurich;
Zurich Insurance Group has become the largest international property and casualty (P&C) insurer in Indonesia – a market of over 260 million people – after completing the acquisition of 80% of PT Asuransi Adira Dinamika (Adira Insurance). The business was acquired from PT Bank Danamon Indonesia (Bank Danamon) and a minority stakeholder.
The transaction 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. These agreements strengthen Zurich’s strong network of more than 70 distribution agreements worldwide.
“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.”
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%.