Insurer MAPFRE, which already owned 31 percent of the insurer, has gained 51 percent and effective control of Indonesian insurance company PT Asuransi Bina Dana Arta Tbk (ABDA).
The transaction was closed at a price of 90 million euros.
Through this acquisition, MAPFRE finalizes its entry into the Indonesian insurance market, which it began in 2013 with the purchase of a 20 percent shareholding in ABDA. An agreement was also signed at that time that saw MAPFRE progressively integrate itself in the Indonesian market via businesses such as MAPFRE ASISTENCIA. In accordance with Indonesian law, once the acquisition has been formalized, MAPFRE must make a public offer for the remaining shares it does not own in ABDA.
In 2015 ABDA was ranked fifth in automobile insurance in Indonesia, with a market share of 6.4 percent, and the company ended 2016 with premium volume of 80 million euros and net earnings of 12 million euros.
ADBA’s financial accounts will be fully consolidated within the MAPFRE Group’s accounts as and from June 2017.
ABDA, which was founded in 1982 and has its headquarters in Jakarta, is listed on the Indonesian stock market. The insurer operates in the automobile, home, transport, health and accident lines and has 36 offices throughout the country that employ 578 people.
Indonesia’s population of 250 million makes it the world’s fourth most populous country and, according to MAPFRE, the market for automobile insurance shows enormous potential, based on greatly increased auto sales in recent years, driven in turn by improved consumer wealth and developments in the regulatory environment.
MAPFRE is the benchmark insurer in the Spanish market, the leading multinational insurance group in Latin America and one of the top 10 insurance companies in Europe in terms of premium volume.
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