MAPFRE takes over Indonesian insurer
MAPFRE has taken control of the Indonesian insurance company PT Asuransi Bina Dana Arta Tbk (ABDA), after increasing its stake in the company from 20% to 51% in a transaction valued at €92 million.
Through the acquisition, MAPFRE will complete its entry into the Indonesian insurance market, which began in October 2013, when it bought 20% of ABDA. It also signed a collaboration agreement with the company through which MAPFRE has been inducted into the Indonesian market over this time via businesses such as MAPFRE ASISTENCIA.
Under the provisions of Indonesian legislation, once the acquisition has been formalised, MAPFRE must make a public takeover bid for the remaining shares in the company.
In 2015 ABDA was ranked fifth in the country’s automobile insurance market, with a marketshare of 6.4%, generating premium volume and net earnings of €93 and €18 million respectively in the same year.
The completion of the deal is subject to obtaining the relevant administrative authorisations.