Warburg Pincus Is Said to Explore Options for Asian Insurer Oona

Warburg Pincus is considering options for Oona Insurance that might lead to a sale, according to people familiar with the matter, after receiving interest from other insurers and investment firms.

The US private equity firm is working with Citigroup Inc. to review strategic opportunities for the Southeast Asian digital general insurer, the people said, asking not to be identified because the deliberations are private.

A transaction could value Oona at several hundred million dollars, and may include forming a partnership with the interested parties, the people said.

Considerations are preliminary and Warburg Pincus might also decide against pursuing a deal, they added.

Representatives for Warburg Pincus and Citigroup declined to comment.

Warburg Pincus and Abhishek Bhatia, a former executive with billionaire Richard Li-backed FWD Group Holdings Ltd., set up Oona with a $350 million equity commitment in 2022. It has acquired two general insurance businesses in the region, Abda in Indonesia and MIIC in the Philippines, via subsidiary Aseana Insurance Investments Holdings Pte.

Warburg Pincus has been busy in Asia, where private equity-led activity is growing. Its data center firm Princeton Digital Group said Wednesday it plans to raise as much as $5 billion in debt to fund a buildout in the region.

Asian self-storage company StorHub Group, also backed by Warburg Pincus, is considering options including bringing in fresh investors to raise cash and boost growth, a person with knowledge of the matter has said.

In December, Warburg Pincus agreed to invest in corporate services provider Acclime and buy a stake in Haier Smart Home Co.’s Indian unit. It was also in a group of investors that took warehouse operator ESR Group Ltd. private in a $7 billion deal last year.

Photograph: An aerial view of Manhattan in New York, NY, Thursday June 17, 2021. Photo credit: Victor J. Blue/Bloomberg