According to a statement from Zurich Insurance Group received here on Thursday, the transaction also included two long-term strategic cooperation agreements with Danamon Bank and Adira Finance.
The total amount of the transaction reached Rp6.15 trillion with potentials for further increase of value in the future depending on the business performance. With this transaction, Zurich will be the largest joint general insurance venture in Indonesia.
"Zurich has turned the Asia Pacific region into the main generator for its Group`s growth, and Indonesia is our main market. Today`s transactions show our commitment towards Indonesia. It serves as a good opportunity for us to further expand our presence in this region. We also seek to help more customers in fulfilling their insurance needs," CEO of Zurich Insurance for Asia Pacific Jack Howell remarked.
Howell stated that he was excited to merge with Danamon Bank and Adira Finance, as both parties are widely known and have vast distribution networks.
Along with Zurich`s capabilities in the international market, underwriting abilities, and risk management skills in the industry, he is assured that the venture will reach long-term success.
Indonesia is one of the most attractive markets for the insurance sector in the world. Besides that, it is also the largest economy in South-East Asia with such strong potentials for growth. Additionally, it has a large population of middle-class citizens who continue to thrive.
These factors, combined with the considerably low rate of insurance, create a significant growth potential for the insurance market.
All parties involved hoped the transaction, which still awaits the approval of regulators and the completion of transaction regulations, would be finished by the fourth quarter of 2018.
After all is completed, Zurich will officially own 80 percent ownership of Adira Insurance, while Danamon Bank will be in possession of the rest of 20 percent ownership.
Reporting by Citro Atmoko
Editing by Aria Cindyara, Yoseph Hariyadi
Reporter: Antara
Editor: Andi Abdussalam
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