Spain’s MAPFRE announced that it has acquired a 20 percent stake in the Indonesian insurance company Asuransi Bina Dana Arta (ABDA), and “has established a partnership in which MAPFRE becomes the industrial insurance partner that will provide the necessary expertise to develop the insurance operations of ABDA in the growing Indonesian insurance market.”
In 2012 ABDA was in 10th position in the Indonesian non-life insurance market with premiums reaching €74.36 million [$101.68 million] and net income of €9.29 million [$12.66 million].
“ABDA was established in 1982 and is headquartered in Jakarta; it is listed in the Indonesia Stock Exchange. ABDA operates in Motor Vehicle, Property, Marine Cargo and Accident & Health, has 33 branches across Indonesia and 500 employees,” the announcement said.
“Indonesia has a population of 250 million, ranks 4th in the world. Its economy, rated Investment Grade by Moody’s and Fitch (BBB-) is estimated to grow by nearly 6percent per year on average in the next five years. Its Non-Life Insurance Market is estimated to grow by over 7 percent per year up to 2020. Its Non-Life Insurance penetration, 0.6 percent of GDP, is lower than most Asian markets, which highlights its growth potential,” MAPFRE said.
Global insurer MAPFRE is the leader in the Spanish market, and is also present in 46 countries across all five continents. “With a staff of almost 36,000 people, MAPFRE works with over 62,000 insurance professionals worldwide, serving the needs of more than 23 million clients through its global network of 5,390 offices,” the bulletin added. “Active in Asia for over 20 years with an 800-strong team, MAPFRE generates over €300 million [$409 million] in premium income annually in the region, principally in China, Japan and the Philippines, as well as other territories in the area.”