Zurich Insurance Group (Zurich) has completed the acquisition of 80% stake in PT Asuransi Adira Dinamika (Adira Insurance) from Bank Danamon in Indonesia.
Post-acquisition, Bank Danamon will continue to own nearly 20% stake in Adira Insurance.
With the completion of the majority stake acquisition in Adira Insurance, Zurich has emerged as one of the largest international property and casualty (P&C) insurers in the country.
Originally signed in September last year, the agreement also covers long-term distribution pact with Bank Danamon and Adira Finance, a provider of motorcycle and car financing solutions.
Zurich paid a total of IDR6.15 trillion ($414m). The deal also includes incremental payments in the future based on business performance.
Commenting on the deal, Zurich Asia Pacific CEO Jack Howell said: “Indonesia’s growing economy, rapidly expanding the 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.”
Last year, Adira Insurance underwrote gross written premiums of $170.4m.
In addition, Zurich recently partnered with American technology company Applied Systems to distribute its motor insurance plans using the Applied Epic platform and Applied TAM.
To support the distribution, Zurich will link its Insurer Hosted Pricing platform with the Applied Rating Fulfilment Services.
Under the arrangement, the Swiss insurer will maintain pricing in its rating engine, while Applied Systems will manage connectivity, quote offering and the exchange of data among Zurich, brokers and policyholders.
Applied Systems senior vice president of international operations stated: “Through this partnership, Zurich will be able to update their rates in real time, providing brokers with accurate and competitive rates to deliver business growth for all stakeholders across the insurance lifecycle.”
Serving as a leading data exchange platform for the UK insurers, Applied Rating and Fulfilment Services allow insurance firms and brokers to market their personal and commercial lines products.
Linking insurers to a broker’s back-office system, the Applied Rating and Fulfilment Services also automates the rating and policy fulfilment procedure for both insurers and brokers.
Commenting on the collaboration, Zurich head of personal lines Phil Ost said: “At Zurich our goal is to create ease of doing business when connecting to brokers.